Business responsibility.
It should be understood that both KYC and AML, in addition to providing security and protection from fraudsters, are largely related to the social responsibility of business. In Western countries, it has become a good tone to take into account the need for AML procedures in transactions and indicate in contracts. Even at the household level, this is normally perceived by society.
Online KYC Compliance Check - kycaid.com
Case. The mayor of a small German town, suspected of money laundering, will have problems even buying bread in a bakery — the seller may be accused of complicity.
Business is responsible not only to society, but also to the state. In developed countries, financial institutions have long been guided by the principles of AML in their activities. There, KYC requirements are mandatory for all companies associated with digital assets. Previously, the cryptocurrency business rarely requested information from customers for KYC. But as the popularity and development of decentralized finance have grown, cases of fraud and criminal use of digital financial resources have become more frequent.
The story of the Binance crypto exchange is indicative, which, avoiding the persecution of regulators, was forced to introduce mandatory verification of all users in August of this year.
In law-abiding Germany, the Federal Financial Supervision Authority (BaFin) has published a special "Anti-Money Laundering Guide for the crypto Business". In the guide, the regulator presents three main topics in the field of combating money laundering:
Risk management. It is important for every registered crypto company in Germany to have an effective risk management system, including their analysis.
Customer due diligence obligations. BaFin also provides information on customer due diligence obligations. Including the fact that a crypto company must necessarily verify its customers and partners.
Suspicious activity reports. A cryptocurrency company is required to report all suspicious transactions to the Financial intelligence service.
In their activities, crypto companies often face misunderstanding or even rejection of the principles of AML/KYC. Here I would like to note that if you are going to invest in cryptocurrencies, then you should not be afraid of AML procedures, rather it is an indicator that a crypto company is responsible for its work and provides a safe space for conducting mutually beneficial operations.
Responsible crypto companies, aimed at long-term, reliable and secure business, are not only fully responsible for the financial assets of their clients, but are also a responsible link in the fight against illicit trafficking and money laundering. Such companies should have competent, certified specialists in the field of AML and KYC in their staff. Perhaps not everyone may like the actions of an AML officer, but this person, in fact, ensures the purity of the business and the safety of his company and its customers.