Reykjavik, Iceland -- (SBWIRE) -- 07/29/2022 -- The web of regulation around crypto transactions is gradually tightening, as this innovative area of finance starts to get more structure. A big part of this is ensuring that cryptocurrency doesn't leave loopholes that could be exploited for money laundering purposes. A new EU proposal sets out the requirements for banks to collect data on both senders and recipients in a transaction to help achieve this. Called the 'travel rule,' it will require that cryptocurrency firms start collecting this data for every transaction, even those that are just a couple of euros. It will also require that every transaction that comes in at above EUR1,000 be reported to the financial authorities. This will essentially remove the threshold for reporting and could be a big win in anti-money laundering terms.
There has obviously been a lot of resistance from cryptocurrency exchanges because of the challenges that this could create. Those challenges include that there are some coins that are not covered by AML transaction monitoring systems - and that new checks and data gathering could slow transactions down. However, many are also in favour. The motivation for the new AML transaction monitoring rules is to help ensure that even small amounts of cryptocurrency cannot be involved in money laundering. Those who put the proposal together pointed out that these small transactions are often used to disguise criminal proceeds and launder money all over the world.
The benefits of AML transaction monitoring are obvious when examined in this context. Closing the loophole of smaller volumes of cash being used for money laundering could make a big difference overall - and is certainly worth the effort of the proposals that have been drawn up. Lucinity's software includes comprehensive AML transaction monitoring, as well as actor intelligence and the Lucinity SAR Manager. The team at Lucinity has worked hard to create a system that is not only effective but also easy to use and highly accessible. This has been achieved via a combination of expertise and experience in banking compliance, regulation and data science - as well as a vision to use the best of both human intelligence and AI. As a result Lucinity's system includes AML transaction software and has all the benefits of this holistic approach, including the assessing of probabilities and analysis of big data patterns that only AI can do.
Lucinity is a business with a firm foundation when it comes to values. From shared intelligence and knowledge, through to a quiet strength in the fight against money laundering, the business has worked hard to create a culture that reflects its key vision. This has expanded with the enterprise as it has grown since it was first established in 2018 - into a number of global locations including Reykjavík, New York, London and Brussels.
About Lucinity
Lucinity is an anti-money laundering (AML) software developer on a mission to Make Money Good. Lucinity aims to solve productivity and efficiency issues for financial institutions through the company's 'Human AI' approach, a toolset that combines next-generation AI with human insights and expertise.
By leveraging AI, the AML software learns from every interaction and continues to improve indefinitely, providing fewer false positives and saving time. This is on top of its best-in-class interface and visualizations that put users first. Professionals can experience Lucinity's AML compliance solution, including transaction monitoring, through a free demo environment available on https://www.lucinity.com/signup.
Lucinity operates globally, with headquarters in Reykjavík, and serves customers ranging from Tier-1 banks to FinTechs.
Company Quote
Founder and CEO, Guðmundur Kristjánsson, comments, "Lucinity's unique experience in banking, compliance, regulation, and data science has helped us develop a new approach to tackling money laundering—harnessing the best of human intelligence and augmenting it with advanced AI.
Our simple-to-use systems work with analysts, not against them, complementing their skills and making them superheroes so they can take on financial crime, saving institutions time and money in the process.
We believe that by transforming AML, we can have a tremendous positive impact on society. Money laundering is a crime that fuels crime. That is why we set out on the mission of Making Money Good."
To find out more information about AML transaction monitoring visit https://www.lucinity.com
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About Lucinity
Lucinity is an AML software company, founded in 2018, with offices in Reykjavík, New York, London, and Brussels. Using advanced AI systems, we help banks discover money laundering and really know their customers, more efficiently – to stop the funding of serious crime across the world.