The new platform is focused on advancing transaction monitoring for anti-money laundering (AML) through the introduction of a user-centric, risk-based approach, which regulators favor. It is designed to provide users with the industry’s most accurate and efficient AML compliance results through dynamic modeling, a transparent access framework, and contextual identity analysis designed to help supercharge a company’s compliance efforts.

“Version 2.0 of our market tested and globally proven platform introduces fundamental changes to our user interface and analytics making users behind transactions, and their digital representation, the centerpiece for evaluation and analysis of compliance and risk mitigation operations,” said Garrett Gafke, CEO, IdentityMind Global. “It is the only platform based on digital identities that centers on the knowledge of the user at the forefront of the analysis.”

Version 2.0 represents the culmination of years of research in digital identities, machine learning, anomaly detection, regulatory compliance, product development and close consultation with IdentityMInd clients. It enables clients’ compliance and risk analysts to put in place a risk-based approach based on the understanding of the user behind the transaction.

According to Gafke, IdentityMind’s Version 2.0 is:

• Dynamic: It adapts to the current conditions of the users, the environment, and it “learns” from the activity that is taking place.

• Contextual: It understands that one set of users are significantly behaving differently compared to other users. For example, it understands that the price of Bitcoin is more volatile today than tomorrow is relevant to understanding the risk of a given transaction or user.

• Transparent: Risk and compliance analysts need to be able to understand why a system took a certain decision, and they need to be able to adjust when necessary.

According to IdentityMind, a risk-based approach is a methodology that reduces the cost of compliance. This methodology is favored by regulators as stated in the Bank Secrecy Act in the United States and more widely recommended by the Financial Action Task Force (FATF). The premise is that it enables organizations to be more effective by applying risk mitigation techniques commensurate to the risks identified.

Version 2.0 also puts to rest the “build vs. buy” conundrum some companies face in their compliance and risk operations. Homebuilt, proprietary solutions require significant human and capital resources to build and maintain for their fraud, risk and compliance operations. IdentityMind’s SaaS-based solution on the other hand delivers new, powerful features non-stop while enabling analysts to focus on their core competencies and responsibilities.

Version 2.0 has been designed to meet all the regulatory compliance requirements and needs of existing clients and markets IdentityMind addresses including:

• Financial institutions: Providing the industry’s first cryptocurrency risk-based transaction monitoring for AML.
• Credit unions and community banks: Facilitate mandatory compliance to avoid monetary and reputational damage.
• Money services businesses (MSBs): Helps MSBs protect their platforms by meeting compliance requirements and protecting against money laundering.
• Cryptocurrency exchanges: Enables cryptocurrency exchanges to perform transaction monitoring on crypto transactions. IdentityMind supports many digital currencies including Bitcoin, Ethereum, Litecoin and others.
• Marketplaces: Provides a digital identity, risk-based approach on the reputation of people who interact with each other on marketplaces.

Features of Version 2.0 include:

• Generate alerts: Takes a risk-based approach, user centric alerts and historical deviation (IQR).
• Optimized UI: Enables analysts to effectively review alerts using anomaly detection, transaction history and views into money transfer, peer group comparisons, and IQR historical view.
• Decision by date (SLAs): Helps meet regulatory deadlines for SAR filings.
• Case management: Provides optimized view for investigators, email communication and and workflow.
• Cryptocurrency risk assessment: Provides risk flags, risk scores (range), real-time alerts, transaction monitoring policies, graphical view of transactions.
• Reporting: Delivers AML program reports for auditors and examiners.

“IdentityMind’s Version 2.0 platform provides a risk and digital identity-based solution that helps determine the appropriate risk level of each user,” said Julie Conroy, Research Director for Aite Group’s Retail Banking & Payments practice. “In doing so, IdentityMind helps businesses protect against illicit activities, provide actionable insights into their AML program, realize greater operational efficiencies, and meet regulatory requirements.”

“We have been using the IdentityMind platform since we started our operations,” said Martin Kopacz, Compliance Officer, Xapo. “It provides the needed services for implementing a KYC and AML cost-effective, risk-based approach worldwide. IdentityMind team has demonstrated commitment to our team by working on specific features that meet our operational needs.”