Why using effective blockchain monitoring solutions and Holistic Screening is important
In the four years since we first began publishing our sanctions guide, global events have placed growing importance on the issue of sanctions compliance.
Russia’s attack on Ukraine in 2022 – and the subsequent array of sanctions on Moscow as a result – add an extra layer of complexity for compliance officers worldwide.
The same can be said for mixing services such as Tornado Cash and Blender, which have been the subject of sanctions by the US Treasury’s Office of Foreign Assets Control (OFAC) in the last year.
So, how exactly can you hope to stay safe in an ever-changing sanctions environment?
In our latest “Sanctions Compliance in Cryptocurrencies 2023” report, we reveal the five key steps you need to take to navigate the issue of crypto sanctions.
In this post, we will explain how efficient risk-based monitoring through blockchain analytics tools and Elliptic’s Holistic Screening will help you detect potential connections to sanctioned parties.
Staying safe
Avoiding exposure to sanctioned entities and individuals that use cryptocurrencies requires having the right technical solutions in place. Correctly utilizing the solutions we have developed at Elliptic – which rely on best-in-class data quality – can enable you to engage in efficient riskbased monitoring and to detect potential connections to sanctioned parties with confidence.
There are two essential components of blockchain analytics that any compliance team should have in place if it wants to be compliant with sanctions requirements:
- Pre-transaction wallet screening.
- Post-transaction screening to determine the ultimate source and destination of funds.
Screening destination crypto addresses prior to allowing customers to withdraw funds is critical to ensuring that you don’t make funds available to a sanctioned person or jurisdiction.
Monitoring fund flows on an ongoing basis is critical for identifying attempted sanctions evasion among your customers’ transactions. Elliptic’s data set contains crypto addresses belonging to individuals and entities on global sanctions lists, as well as information about exchanges and other entities using crypto in jurisdictions such as Iran, North Korea and Russia.
Read more @ Elliptic.co