Sumsub and Chainalysis Partner to Fortify Businesses against Crypto Fraud

  financemagnates.com 17 h

Sumsub, a verification platform, has partnered with Chainalysis to provide businesses with a solution for Know Your Customer (KYC), Anti-Money Laundering (AML), and transaction monitoring. According to the press release, Sumsub’s integration of the blockchain analysis firm aims to give users automated transaction monitoring, enhanced fraud detection, and access to a unified dashboard.

Crypto Compliance and Security

Jacob Sever, the Co-Founder and Chief Innovation Officer at Sumsub, mentioned: «Sumsub’s solution-enhanced capabilities, integrated with Chainalysis’ analytics and key management model, are reshaping the landscape of crypto compliance and security in the digital realm.»

«Through this integration, businesses can align with stringent global AML and KYC regulations, fostering trust and confidence in crypto transactions.»

According to Sumsub, businesses can access tools to ensure compliance and combat fraud using the new platform. Besides that, crypto users can benefit as regulations continue to evolve.

Sumsub Targets Crypto Businesses

Ian Andrews, the Chief Marketing Officer at Chainalysis, mentioned: «Partnering with Sumsub, a leading identity verification and fraud prevention platform, is another step for us towards bringing greater trust and transparency into the crypto world.»

«By developing an integration between Sumsub’s platform and our crypto risk solution, we’re providing next-generation digital infrastructure for security and compliance controls in the crypto industry.»

Among the companies that have integrated Sumsub to automate KYC processes is Match-Trade Technologies. The company offers AI-powered checks to eliminate the need for manual document reviews.

Sumsub Targets Crypto Businesses

Sumsub screens potential clients against sanction lists and other red flags, helping brokers stay compliant and mitigate fraud risks. According to the company, verification ensures a seamless onboarding process for trading platforms.

In the financial sector, new accounts are opened daily. KYC processes safeguards institutions by verifying client identities and uncovering potential red flags. This deters criminal activity and helps build trust and transparency within the financial system.

Financial institutions employ a layered approach, starting with Customer Identification Programs (CIP) that verify basic details like name, address, and ID. Next comes Customer Due Diligence, which delves deeper to assess potential risks associated with each client. Finally, Enhanced Due Diligence provides the most scrutiny, reserved for high-risk cases.

As technology evolves, so do KYC protocols. AI and digital identity solutions are streamlining the process, making it faster and more efficient. Facial biometrics hold promise as a future standard, offering even greater accuracy.

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