CipherTrace: Large Banks Unknowingly Process Up To $2 Billion Yearly for Crypto Firms

Blockchain intelligence firm, CipherTrace claims that each year, many major banks unknowingly process up to an estimated $2 billion in undetected cryptocurrency-related transfers.

The US Bank Secrecy Act and Financial Action Task Force (FATF) travel rule expect that banks should recognize money service businesses, under which cryptocurrency exchanges can be categorized, to prevent issues such as money laundering from arising.

However, CipherTrace, in a release published by Cointelegraph, argues that most of these banks are not well equipped to recognize that cryptocurrency exchanges and other virtual asset service providers are all money service businesses (MSBs).

With this in mind, the firm has recently launched a new product in a bid to help banks combat risks associated with unregistered crypto businesses making use of their services to process funds.

This new product, dubbed “Crypto Risk Intelligence,” is formulated to help banks with the main emphasis on four various areas.

The first area of focus is on helping banks to detect the unknown risks between virtual asset service providers and bank payment networks. 

The second area of focus is on providing these banks with access to the firm’s risk scores in order to check for crypto-related businesses.

The third area of focus is on enabling the banks to recognize money service businesses that are not registered and other peer-to-peer systems that make use of the services provided by the banks.

And the fourth area of focus is on helping the banks to counter the risks associated with darknet and to identify laundered funds or other financial products that are facilitated by cryptocurrency transactions.

In a similar report, Coinfomania reported the director of FinCEN as saying that cryptocurrency businesses are now adopting its May 2019 guidance publication with regards to the convertible virtual currencies. 

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