Cost-Effective Bank Secrecy Act Compliance For Digital Currency Companies

We designed an integrated end-to-end BSA program for digital currency companies to bring them up to compliance, but also meet the high-risk due diligence requirements placed on financial institutions to bank MSBs.

CoinComply and IdentityMind have announced a partnership to provide the first integrated Know Your Customer (KYC), transaction monitoring, and case management enterprise solution for digital currency companies to perform automated identity verification and transaction monitoring as part of a Bank Secrecy Act (BSA) program.

CoinComply, a consultancy specializing in digital currency companies, developed an integrated AML program that addresses the 4 pillars of BSA Programs: (1) internal controls, (2) designated compliance officer, (3) training, and (4) independent testing. As part of this program, CoinComply establishes protocols for identity verification and transaction monitoring requiring the use of automated technologies for practical and cost effective implementation. IdentityMind’s flagship on-demand Anti-Fraud and Risk Management Platform offers integrated KYC, transaction monitoring, sanctions screening, and case management. The IdentityMind Platform is the only technology that offers support for monitoring transactions in digital currency exchanges, specifically associated with BitCoin and other digital wallets, and BitCoin accepting merchants.

The combined solution will offer automated reporting specific to the BSA program established by CoinComply that addresses anti-money laundering rules and regulations. In addition, the solution will offer a complete set of analytics and rules that will alert in real-time possible unusual or suspicious activity, and then facilitating the electronic filing of BSA-required Suspicious Activity Reports (SARs) through IdentityMind’s user interface.

"The IdentityMind platform provides one functional system for the end-user from the customers point-of-entry to verify identity, screen against government sanctions lists, and monitor ongoing transactional activity for indicators of unusual or suspicious activity as required by the BSA," said Brian Stoeckert,

CoinComply’s Chief Strategy Officer. "We designed an integrated end-to-end BSA program for digital currency companies to bring them up to compliance, but also meet the high-risk due diligence requirements placed on financial institutions to bank MSBs."

As part of the support for identity verification and KYC activities, the IdentityMind platform offers tier-based verification combining proprietary technology and seamless integration with multiple leading vendors in the industry. Entities can decide what level of verification is appropriate given CoinComply’s program. Furthermore, the Platform reports the effectiveness of the tiers so entities can adjust the program, if necessary.

"We are thrilled to partner with CoinComply and provide a technological solution that enables the proper development of digital currencies companies," said Jose Caldera, IdentityMind’s VP of Marketing and Products.

"Digital currencies are an inevitable evolution, embracing them is necessary, as it is to regulate them. These companies are eager to demonstrate that they can be part of the overall ecosystem. We are providing a cost-effective risk management platform so they can thrive while keeping regulators and auditors with proper visibility and controls."

The CoinComply program and IdentityMind Platform are immediately available for performing CIP/KYC programs, and transaction monitoring. Enhanced AML rules, analytics and reports will be available before the end of the year, and SAR filing to FINCEN on Q1 2014.

About CoinComply

CoinComply, a unique digital currency consultancy, offers the first end-to-end Anti-Money Laundering (AML), Know Your Customer (KYC), and transaction monitoring solution solely dedicated for cryptocurrency companies, including digital currency providers, exchangers and payment processors. The key to building and maintaining an effective Bank Secrecy Act (BSA) program goes beyond money service business (MSB) registration and policies, rather it lies in how effective a company operationally executes its BSA program. CoinComply provides customized BSA programs, risk assessments, identity verification, sanctions screening, and transaction monitoring processes to improve a company’s probability of success while managing the costs of compliance. An ongoing concierge service monitors the 4 pillars of the BSA program by providing operational expertise, industry updates, and documenting program enhancements.

For more information about CoinComply, please refer to our website http://www.coincomply.com/

About IdentityMind

IdentityMind™ is an on-demand platform providing next generation risk management and anti-fraud services for the e-commerce ecosystem: Acquiring Banks, Payment Processors and Gateways, Payment Service Providers (PSP/ISO/MSP,IPSP), Digital Currency Exchanges and Online Merchants. These services are offered in real-time based on our patent-pending Electronic DNA (eDNA™) technology which tracks the different entities (consumers, merchants, cardholders, payment wallets, alternative payment methods, etc) of the e-commerce ecosystem. It builds reputation associated to these entities that can be used when evaluating anti-fraud, merchant account applications, consumer account origination, identity verification services, money laundering, and others. This reputation is shared during the analysis so everyone can benefit from the "network effect" while keeping the privacy of the entities involved.

For more information about IdentityMind, please refer to our website http://www.identitymind.com/