With cryptocurrency-related compliance issues on the rise, and an increase in enforcement actions anticipated, the need for financial institutions to adopt solid AML programs addressing this market segment is expected to escalate this year.
With this activity at the forefront, NICE Actimize, a NICE business (Nasdaq: NICE) and leader in Autonomous Financial Crime Management, today announced that CipherTrace, a leading provider of cryptocurrency intelligence and blockchain security, has joined the X-Sight Marketplace, the industry’s first financial crime and compliance ecosystem. The X-Sight Marketplace gateway connects financial services organizations with data, applications, tools and service providers, all in one place, to allow users to experience the value of choice while reducing integration timelines.
The CipherTrace offering identifies cryptocurrency transactions going to digital wallets and crypto exchanges that are known to have significant illicit activity or poor client due diligence processes. Utilizing the CipherTrace offering, crypto exchanges and wallets will have greater visibility to criminal activity for which the transactions can be screened, and appropriate actions taken.
“As financial services organizations take a more active role within the virtual currency landscape, they are increasingly focused on understanding their client’s investment in these currencies as well as the velocity of the funds traveling in and out of the exchanges,” said Craig Costigan, CEO, NICE Actimize. “The addition of a strong cryptocurrency innovator like CipherTrace to the X-Sight Marketplace not only complements our robust anti-money laundering portfolio but also supports FSOs as they strengthen their strategies against cryptocurrency-related fraud and money laundering activities.”
“Financial services organizations are looking for technology offerings that integrate with their existing compliance program as they address the challenges of cryptocurrency adoption, both to protect their reputations and their customer’s assets,” said David Jevans, Chief Executive Officer and Founder, CipherTrace. “This problem is much bigger than many financial institutions realize. Recent CipherTrace research found that a typical large bank processes as much as $2 billion a year in cryptocurrency-related transfers. We are pleased to partner with NICE Actimize and its X-Sight Marketplace ecosystem to strengthen the need in this area while fighting financial crime.”
Cryptocurrency theft surged in 2019 compared to the previous year, with more money flowing through digital exchanges and an increasing number of criminals looking to carry out bigger heists, according to CipherTrace’s study “Cryptocurrency Anti-Money Laundering (AML) Report.” The report also stated that around one-third of the top 120 crypto exchanges are "weak" when it comes to know-your-customer (KYC) verification, while fully two-thirds "lack strong KYC policies," reinforcing the need for effective technology solutions that specialize in cryptocurrencies.
NICE Actimize’s X-Sight Marketplace currently has nearly 40 partners in its growing ecosystem, with offerings addressing such categories as customer & counterparty intelligence, data management, device & channel intelligence, identity verification, screening & adverse media, user authentication & fraud, CDD/KYC, transaction monitoring, and alert & case management.