Palo Alto-based IdentityMind Global, a risk management and payment solutions provider, announced this week that their solution provides anti-money aundering capabilities required to comply with the final Bitlicense requirements announced by the New York Department of Financial Services in early June 2015.
Companies with customers in New York or physically located in the state must submit the application for a Bitlicense. The license requires strong AML capabilities including transaction monitoring and risk-based Know Your Customer (KYC).
Garrett Gafke, IdentityMind Global CEO and President, commented:
We are reassured that our industry-leading compliance solution meets all the transaction monitoring and risk-based KYC requirements stated in the New York Bitlicense. We can safely say to all our clients and the industry overall that by using our platform they have the technology to cost-effectively comply and operate in New York. We continue to support the virtual currency industry both domestic and international.
According to IdentityMind Global, its Bitlicense support includes the following:
- Full transaction monitoring (amount, date, time, payment instructions, fees and charges, names, account numbers, physical addresses).
- Monitoring and real-time alerting for suspicious activity (money laundering, or other illegal or criminal activity).
- Maintaining records to demonstrate compliance with applicable state and federal anti-money laundering laws, rules, and regulations for at least seven years.
- Filing of Suspicious Activity Reports (“SARs”) in accordance with applicable federal laws, rules, and regulations.
Ability to flag or reject specific or impermissible transactions.
- Regulatory Requirements for Virtual Currency to Virtual Currency transactions
Customer Identification Program (CIP)
- Identity verification to a reasonable/practical extent including for unbanked and underbanked users.
- Customer screening against the Office of Foreign Asset Control (OFAC) list, Politically Exposed People (PEP) list, and many other sanctions lists.
- Enhanced Due Diligence for high-risk customers, high-volume accounts, foreign entities, or accounts where a SAR has been filed.
- Prohibition on accounts with foreign shell entities.
- Identification capabilities for transactions with a value greater than $3,000.
IdentityMind also indicates that, for digital currency and Bitcoin businesses that do not want to operate in New York, or have not yet acquired/filed for a New York Bitlicense, its platform also provides location monitoring and Geofencing services allowing clients to block users affected by the New York State requirements.