It’s now more than a year since the Financial Action Task Force (FATF) released its recommendations on tackling money laundering and terrorism financing through cryptocurrencies.
The FATF conducted a year 12-month review on the status of implementation of the recommendations across countries and the private sector. The task force released its highly anticipated report on the same on July 7th and in the report, it noted that it’s impressed with the level of adoption in various countries and businesses. However, not all virtual asset businesses and countries have fully implemented its AML and CFT recommendations.
To help with the implementation of these recommendations, blockchain analytics firm Elliptic and blockchain security company CoolbitX have teamed up. In a joint press release on Tuesday, the two companies announced that they will be offering their respective solutions as a package to VASPs hoping to ensure that these businesses will be able to integrate them for added compliance benefits.
CoolbitX provides its clients with Sygna Bridge, an API-based messaging solution enabling businesses to send and receive private data on transactions. Elliptic on its part provides cryptocurrency transaction tracking solutions that help companies comply with both AML (anti-money laundering) and CFT (counter financing of terrorism).
Together, the two firms hope to offer an all-inclusive package to their clients ensuring that they comply with the FATF Travel Rule regulations. Travel Rule provision requires that all VASPs including exchanges to attach identifying information on transaction senders and receivers whilst transmitting the transaction. I.e. the identifying data ‘travels’ with the transaction amounts hence the name Travel Rule.
The FATF announced another 12-month review period scheduled to end in June 2021 upon which it will release another report on the compliance of both countries and businesses in the private sector dealing with cryptocurrencies.
“The July 2020 FATF report highlights, among other things, that it won’t accept claims of technical infeasibility as an excuse for non-compliance with the Travel Rule – and that it expects VASPs to implement solutions,” Elliptic’s Head of Policy and Regulatory Affairs David Carlisle said. “Now through our partnership with CoolBitX, we can offer customers Sygna Bridge alongside Elliptic’s crypto risk monitoring solutions to help VASPs take proactive steps in meeting high AML/CFT standards, wherever they operate.”
CoolbitX’s CEO Michael Ou said that,
“with the full range of tools from Sygna and Elliptic, we are thrilled to provide clients with the ability to protect themselves from violating any AML/CFT laws and regulations, allow them to assist regulators to combat illicit money laundering activities, and stay compliant with changing regulations.”
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