A major European-domiciled Cryptoasset Exchange with global reach required a gap analysis to identify all deficiencies in their Customer Risk Rating Model and a roadmap for improving it.
Crypto/ Digital Assets
Financial Crime Framework Review and Enhancement
A major European-domiciled Cryptoasset Exchange with global reach.
The client had a requirement to design a new AML Customer Risk Rating Methodology (RRM) to facilitate the risk assessment of its customers.
Lysis conducted a gap analysis to identify all the deficiencies of the current risk rating methodology. A roadmap was subsequently designed which laid out a plan for implementing the suggested enhancements. The process included an in-depth analysis to demonstrate the various cross-jurisdictional compliance requirements, including the identification and weighting of those risk factors specific to their business and industry. The next step consisted of the testing of a new Customer Risk Rating Methodology on a sample of the client's customers to determine the impact on their Customer AML Risk Rating and thereby ensuring that the results aligned with expectations in terms of the Risk-based Approach. Lastly, Lysis conducted User Acceptance Testing (UAT) of the new AML Customer Risk Rating Methodology.
A major bank with two major trading entities wished to decrease time-to-trade processing overheads for new customers and for new products for existing customers.
Our client had a substantial backlog of transaction alerts. They were concerned that these included a number of true positives that therefore indicated suspicious activity and required reporting.
Following a review from the Financial Conduct Authority (FCA) in 2021, and a subsequent letter from the regulator, the client had to address a number of gaps that were identified by the regulator.
