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CipherTrace launches new product to help banks detect unregistered VASPs, MSBs

CipherTrace has launched a new product for banks that will help identify unregistered virtual asset service providers (VASPs) and cryptocurrency money service businesses (MSBs) in their system.

Image: Unsplash

Tue, 17 Dec 2019, 11:33 am UTC

Crypto analytics company CipherTrace announced the launching of its new solution that will help banks identify existing threats to their current system. Called CipherTrace Crypto Risk Intelligence, the product has several key features including crypto company risk evaluations, identification of unregistered cryptocurrency money service businesses (MSBs), counter-party risk scoring, and several more.

In a press release published on Monday, Dec. 16, CipherTrace said that banks are exposed to cryptocurrency MSBs operating invisibly within their platform. And although the financial industry has some protection placed to ward off these illicit activities, it’s still insufficient to properly cleanse the system.

CipherTrace Crypto Risk Intelligence can help address this issue and identify these MSBs. The crypto intelligence company highlighted four core foundations that it can provide for banks to address this growing issue:

  • Identify risks posed by virtual asset service providers (VASPs) and its connection with the bank payment system
  • Provide scores on over 500 crypto exchanges and other VASPs
  • Reveal MSBs and P2P schemes that are currently operating in a bank’s system
  • Shed light on Dark Web threats and stolen financial products that use cryptocurrencies for money laundering activities

Financial firms exposed to invisible crypto activities

CipherTrace said that one in every 10 U.S. retail banks is unwittingly harboring VASPs and MSBs, which uses the bank’s system to move funds freely. Additionally, the company said that around $2 billion are flowing through these channels undetected on an annual basis, creating a headache for Anti-Money Laundering compliance.

With U.S. authorities and the Financial Action Task Force (FATF) clamping down on the crypto industry, these banks are increasingly being pressured to strengthen their detection systems to flush out these illicit actors. CipherTrace CEO Dave Jevans said that their product is the answer to this issue as they’ve been working with other financial security experts to develop the product in the past year.

“Financial institutions are exposed to cryptocurrency-related risks because they have no way to detect underlying threats. CipherTrace has been working with the most advanced banking security teams throughout the year so they can mitigate their risks. CipherTrace Crypto Risk Intelligence now brings this capability to all banks and financial institutions. Whether you want to bank cryptocurrency companies and assess their risk or detect risky customers on your existing payment networks for FinCEN and BSA compliance, CipherTrace has your solution,” Jevans said.

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