KYC Enhanced Due Diligence Services & The Cryptocurrency Sector

Cryptocurrency, decentralized finance and blockchain (amongst many others) have revolutionized multiple financial sectors over the past 10 years. From a KYC & AML viewpoint, tech such as blockchain and ledgers can fortify and give further insight into transactional monitoring but likewise criminals are quick to exploit any flaws in emerging technologies and the hype that engulfs them.

Currently it is estimated that, as at 13th April 2021, more than 6,700 different cryptocurrencies are traded publicly with a total value of more than $2.2 trillion (CoinMarketCap.com), with Bitcoin alone worth over $1.2 trillion (CoinMarketCap.com estimate)

Cryptocurrency presents two key KYC due diligence issues:

Firstly: can the currency or financial product be used as an instrument to launder money, finance terrorism or fund further crime?
Secondly: are fraudsters and criminals exploiting the hype of cryptocurrency to launch and drive schemes that defraud victims, launder money or are the proceeds from other criminal activity?

Criminals will always be two steps ahead when new financial products and technologies are available. For example, we are currently seeing a trend in financial schemes that exist under the pretence of cryptocurrency, but are in fact Ponzi schemes run by convicted fraudsters with no use of cryptocurrency other than for their marketing.

Our reporting aim is to ensure that our clients know exactly who they are entering into a business relationship with and to ensure that no laundered money or other proceeds of crime enter their financial ecosystem before it is too late. A key benefit of enhanced due diligence before engaging in business, is that it can avoid any reputational risks should any improprieties get revealed later on. Proximal Consulting takes an objective viewpoint in our KYC and EDD reporting, enabling our clients to make informed decisions and fulfil AML regulatory obligations.

Our KYC Enhanced Due Diligence Reports Are:

Specific to the industry the client and/or subject operates in
Fixed price
Strictly confidential
Tailor-made to the client’s requirements
Completed in an agreed time frame
Produced to ensure our client is not exposed to reputational, operational, legal or concentration risks
Precisely written
Rigorously researched and analysed and not just simple database search results
Factual, impartial and objective
We are particularly adept at providing background information on high net worth individuals and/or associated corporate entities, and politically exposed persons (PEPs)

Our Reporting Aims to:

Validate the address and other details provided to our client by the subject of our report, thus ensuring that fundamental KYC checks are carried out.
Provide comprehensive information on the current and previous business activities of the subject of our report.
Provide detailed intelligence on the status of the subject and their source of funds, enabling our client to evaluate the suitability of the person/company.
Establish whether any links exist between the subject of our report and money laundering, organised crime, terrorism and/or corruption.

Complementary Services

We also have substantial experience in providing reports on:

To complement our KYC EDD reports we offer bespoke investigations, country risk reports and AML training. Please see the separate pages on each of these services for further details.

You can also read and sign up to our blog.