An Initial Coin Offering (ICO) takes one asset (such as ether or bitcoin) and redeems it for a token that can be freely transferred, and traded for other cryptocurrencies or fiat currencies on exchanges present worldwide. This mechanism poses a major risk for ICOs being used for laundering proceeds of crime. By redeeming cryptocurrency for tokens, ICO issuers are potentially exchanging cryptocurrency that originated from the illegal activity for fresh tokens that can then be sold for US Dollars, Euros or other fiat currency. Regulators in China, Hong Kong, Russia, Singapore, Switzerland among other countries have sought to bring ICOs within the boundaries of KYC (Know Your Customer) and AML (Anti Money Laundering) controls.
The objective of AML and KYC guidelines is to prevent regulated businesses from being used, intentionally or unintentionally, by criminal entities for money laundering or terror financing. As ICOs are becoming more mainstream, the potential for fraud increases as well. To avoid such fraud events and to keep complaint the organizations must follow KYC and AML regulations properly. With Shufti Pro these organizations can keep both tasks on track.
Shufti Pro verifies identities with its AI-based identity verification solutions that utilize advanced OCR powered by Artificial Intelligence. Additionally, Shufti Pro’s automated AML compliance solution can help businesses identify high-risk clients, perform PEP screening, and real-time sanction list monitoring.
