KYC, KYB, KYI, KYT, CDD, EDD, CAP, CIP

Ensuring Integrity One Customer at a Time

Crypto Know Your Customer (KYC), Customer Due Diligence (CDD) and Related Compliance Processes

In the current environment of rapidly evolving financial crime compliance expectations for crypto and DeFi, knowing exactly who you are doing business with has never been more important. Transparency in customer identity verification are paramount to crypto and DeFi ventures looking to meet today’s regulatory compliance standards. Failure to properly gather and analyze customer information, fully understand the nature and purpose of customer relationships, appropriately assess and maintain customer risk profiles, and mitigate risks associated with financial crimes can lead to major enforcement actions that in turn can result in fines, sanctions, and reputational damage.

All Our Services

Our crypto compliance professionals assist crypto and DeFi ventures in developing and enhancing KYC policies and procedures, including Know Your Customer (KYC), Know Your Business (KYB), Know Your Intermediary (KYI), Know Your Transaction (KYT), Customer Due Diligence (CDD), Enhanced Due Diligence (EDD), Customer Acceptance Policy (CAP), Customer Identification Program (CIP) requirements is essential to safeguard your operations from financial fraud, money laundering, and other illicit activities.

Our team of seasoned experts, with their deep understanding of the crypto sector and regulatory compliance requirements, is ready to guide you through every aspect of these processes. We offer end-to-end solutions, from the development of robust compliance policies and the selection of appropriate compliance tools, to the implementation of these tools and the provision of managed services.

In addition, we understand the importance of empowering your team with the knowledge and skills to manage compliance effectively. That’s why we offer comprehensive training programs that are both engaging and practical, equipping your team with the necessary tools to ensure ongoing compliance.

Terminology

Know Your Customer (KYC)

In the crypto sector, KYC is a critical process that involves verifying the identity of individual customers to prevent identity theft, financial fraud, money laundering, and terrorist financing. This process typically involves collecting and verifying information such as name, date of birth, address, and an identification number. In the context of crypto, KYC can also involve understanding a customer’s crypto transaction patterns and assessing the risk they pose.

Know Your Business (KYB)

KYB is similar to KYC but focuses on business customers. It involves verifying the legitimacy of the business and understanding its ownership structure, nature of business activities, and financial dealings. In the crypto sector, KYB can help crypto exchanges and other businesses to ensure they are not facilitating illegal activities or dealing with shell companies.

Know Your Intermediary (KYI)

KYI is a process that involves understanding and assessing the risk associated with intermediaries such as brokers, agents, and other third parties that a business deals with. In the crypto sector, KYI can help in identifying and managing risks associated with intermediaries involved in crypto transactions.

Know Your Transaction (KYT)

KYT is a process that involves monitoring and understanding the nature of transactions conducted by customers. In the crypto sector, KYT can help in identifying suspicious transaction patterns, understanding the source and destination of funds, and detecting potential illicit activities.

Customer Due Diligence (CDD)

CDD involves assessing the risk level of customers based on their identity, nature of business activities, and risk factors such as geographical location, type of transactions, etc. In the crypto sector, CDD can help businesses to identify high-risk customers and monitor their transactions more closely to prevent illegal activities.

Enhanced Due Diligence (EDD)

EDD is a more detailed form of CDD that is used for high-risk customers. It involves collecting additional information and conducting a deeper analysis of the customer’s activities. In the crypto sector, EDD can involve analyzing a customer’s crypto transaction patterns, source of funds, and connections to high-risk jurisdictions or entities.

Customer Acceptance Policy (CAP)

CAP is a policy that sets out the criteria for accepting new customers and conducting business with existing customers. In the crypto sector, a CAP can help businesses define the types of customers they are willing to accept, based on factors such as risk level, geographical location, and nature of crypto activities.

Customer Identification Program (CIP)

CIP is a requirement in many jurisdictions that involves collecting and verifying information to establish the identity of a customer. In the crypto sector, CIP can involve verifying a customer’s digital identity and tracking their crypto transactions to ensure they are who they claim to be.

Services

We offer a comprehensive suite of related compliance services designed to meet your specific needs. From policy development and tool selection to implementation and managed services, we provide end-to-end solutions tailored to your operations. In addition, we offer comprehensive training programs to equip your team with the knowledge and skills needed to manage compliance effectively. Some of the key services include:

Compliance Risk Assessment

We can conduct a comprehensive assessment of your compliance risks. This includes identifying potential compliance risks, assessing the impact and likelihood of these risks, and developing strategies to mitigate these risks.

KYC (Know Your Customer) Compliance

We help you implement robust KYC processes to verify the identity of your customers and assess their risk profiles.

KYB (Know Your Business) Compliance

We assist you in verifying the legitimacy of business customers and understanding their business activities.

KYI (Know Your Intermediary) Compliance

We guide you in assessing the risk associated with intermediaries involved in your crypto transactions.

KYT (Know Your Transaction) Compliance

We assist you in monitoring and understanding the nature of transactions conducted by your customers.

CDD (Customer Due Diligence) Compliance

We conduct comprehensive customer due diligence to assess the risk level of your customers and monitor their transactions.

EDD (Enhanced Due Diligence) Compliance

We provide enhanced due diligence for high-risk customers, collecting additional information and conducting a deeper analysis of their activities. Service could include, where relevant, additional services from our specialist due diligence business Crypto Investigators.

CAP (Customer Acceptance Policy) Compliance

We guide you in developing a CAP that defines the types of customers you are willing to accept based on factors such as risk level, geographical location, and nature of crypto activities.

CIP (Customer Identification Program) Compliance

We help you implement a robust CIP to verify the identity of your customers and track their crypto transactions.

Policy Development

We assist you in developing robust compliance policies that align with regulatory requirements and best practices.

Procedure Development and Institutionalization

We can help you develop and institutionalize procedures for managing compliance. This includes creating standard operating procedures (SOPs), developing process maps, and setting up mechanisms for monitoring compliance with these procedures.

Organizational Structure and Governance

We can assist you in defining the appropriate organizational structure and governance model for managing compliance in your organization. This includes defining roles and responsibilities, establishing reporting lines, and setting up governance committees.

Compliance Tool Selection and Implementation

We guide you in selecting and implementing the right compliance tools to manage and mitigate compliance risks effectively.

Data Provider Selection and Implementation

We can guide you in selecting and implementing relevant data providers for managing compliance. This includes assessing the quality of data provided, evaluating the reliability of the data provider, and integrating the data into your compliance processes.

Tool Optimization

We can assist you in optimizing the tools used for managing compliance. This includes configuring the tools to meet your specific needs, integrating the tools with your existing systems, and training your team on how to use the tools effectively.

Alert Management

We can help you set up and manage alerts for potential compliance issues. This includes defining the criteria for triggering alerts, setting up the alerting mechanism, and establishing procedures for responding to alerts.

Managed Compliance Services

We provide managed services to handle your compliance processes, allowing you to focus on your core business activities.

Regulatory Reporting

We can assist you in meeting your regulatory reporting obligations. This includes understanding the reporting requirements, collecting the necessary data, and preparing and submitting the reports.

Why MoneyPay Ltd?

Navigating the complex landscape of crypto compliance requires a partner with deep expertise, industry qualifications, and a forward-thinking approach. MoneyPay Ltd brings all these qualities to the table, making us the ideal partner for your compliance needs.

TradFi Expertise Meets Crypto Knowledge

Our team combines extensive experience in traditional finance (TradFi) with a deep understanding of the crypto sector. This unique blend of expertise enables us to bridge the gap between the established practices of TradFi and the innovative world of crypto, providing you with compliance solutions that are both robust and tailored to the specific needs of the crypto sector.

Industry-Qualified Professionals

Our team holds numerous industry qualifications, including certifications from the Association of Certified Anti-Money Laundering Specialists (ACAMS) and other recognized bodies. These qualifications reflect our commitment to maintaining the highest standards of professionalism and expertise in our services. See some of our Qualifications.

Regulatory Engagement

We are actively engaged with regulators, contributing to the development of compliance requirements in the crypto sector. This engagement gives us a unique insight into the regulatory landscape, enabling us to provide you with compliance solutions that are not only aligned with current requirements but also prepared for future changes.

Comprehensive Services

We offer a comprehensive suite of compliance services, covering every aspect of KYC, KYB, KYI, KYT, CDD, EDD, CAP, and CIP requirements. From policy development and tool selection to implementation and managed services, we provide end-to-end solutions tailored to your specific needs.