In the Bitcoin space compliance and KYC (know your customer) is extremely important. Large companies, such as Bitcoin of America employ a full-time compliance officer to ensure they follow all rules and regulations when it comes to BSA/AML and KYC policies.
It is obviously important to take the necessary precautions to prevent money laundering and other illegitimate actions when it comes to Bitcoin. By their very nature, money launderers will go to great lengths to cover their tracks. In the process, they use the normal activities of legitimate businesses to help them “clean” ill-gotten gains.
Although regulations on virtual currencies are still not clear, one thing that is clear is that authorities are becoming wary that cryptos are being used for money laundering. For this reason, it is imperative for companies to implement compliance guidelines to ensure that they are on the safe side of the law. Here, in this article, we look at why compliance, KYC, BSA/AML are important.
Legitimate businesses or individuals used for money laundering may inadvertently fall under non-compliance with Bank Secrecy Act (BSA)/Anti-Money Laundering (AML) requirements. Since the flow of funds through money laundering can be used to finance drug-related, terrorist, or other illegal activities, the issue has been raised to the level of national security policy. There is little wriggle room: virtually all financial service businesses are responsible for designing and implementing risk-based anti-money laundering controls.
In the US Treasury Department, there are several units that are tasked with promotion, monitoring, and enforcement of compliance with anti-money laundering rules. Financial institutions must ensure that their business is in accordance with the stated compliance protocols so that there is no misuse of user funds, while maintaining customer security and safety. Organizations who chose to not implement compliance policies will find themselves heavily fined, which inadvertently also puts the users’ funds at risk of seizure by law enforcement agencies.
In addition, the parties not operating in accordance with the BSA/AML and KYC requirements may find their top-level employees personally held liable for any acts of money laundering with even the remotest connections to the business.
In light of this, having strong AML policies in the organization will help it to avoid heavy fines or cancelation of their operating license. It is important to note that various exchanges have had their operations suspended in the US and beyond for failure to adhere to the AML guidelines provided by the financial regulators in those respective countries. Most operations don’t want to risk this and as result implement an AML policy.
Know Your Customer
As money launderers have become more sophisticated, and more adept at using both banking and non-banking service providers like crypto trading platforms, regulators have placed more emphasis on Know Your Customer. Every BSA/AML compliance program must include a Customer Identification Program (CIP) based on Customer Due Diligence (CDD) investigations.
Financial institutions are required to have a written CIP that meets minimum standards for that institution. The aim is to provide a reasonable basis to believe that the customer’s identity is verifiably known.
It is believed that these regulations also play a role in safeguarding the interests of average crypto-user, allowing them to reap most of the benefits of the cryptocurrency while offsetting the risk of being entangled in legal or bureaucratic hurdles due to the actions of certain vested interests. Bitcoin of America understands the importance of these regulations, and hence has developed a comprehensive KYC policy along with a dedicated compliance officer to maintain complete accountability in a transparent and readily verifiable manner. The firm also conducts regular annual audits to ensure everything is in its right place.
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By going the extra mile to adhere to all the regulations in place, combined with the platform’s resolve to prioritize the safety and security of customers’ information and funds, Bitcoin of America gains a place for itself as one of the most reliable crypto-platforms in the world. Not only is the company fully compliant, but they offer consumers a fast, reliable and easy way to buy Bitcoin and other cryptocurrencies. Bitcoin of America offers same-day settlement on Bitcoin transactions and a live customer service option to enhance the consumer experience.
Learn more about Bitcoin of America at – https://www.bitcoinofamerica.org/