On September 7, Bithumb, a Korean virtual asset exchange, announced that it has built a comprehensive AML system in preparation for the “Specific Financial Transaction Information Reporting and Use Law” which will take effect in March next year.
This system consists of ▲ a customer verification (CDD·EDD) obligation to prevent money laundering and a suspicious transaction report (STR) system ▲ anomalous financial transaction detection system (FDS) system ▲ a virtual transaction tracking system. The comprehensive system was developed based on the solution provider Octasolution’s ‘cryptoAML-PRISM’ solution by combining Bithumb’s experience in operating a virtual asset exchange.
Octasolution is a company that provides money laundering prevention solutions based on RegTech (innovative IT technology for financial compliance) and FATCA/CRS solutions to existing financial companies such as banks, insurance, and capital.
The system collects and analyzes transaction information such as KRW and virtual asset deposit and withdrawal details, and automatically blocks transactions and withdrawals when suspicious transactions are detected. The virtual asset transaction tracking system is used to understand the flow of funds by analyzing deposit and withdrawal transactions using wallet addresses.
Bithumb said, “When the law enforcement decree that contains specific details such as money laundering prevention is announced, we will continue to pursue system supplementation and improvement.” Bithumb plans to integrate essential functions such as Virtual asset providers such as CoolBitX solution ‘Signa Bridge’, Uppsala Security’s ‘Wallet Risk Reputation Database (TRDB)’, and wallet risk prediction system ‘CARA’ into Octasolution’s ‘Octa RegTech Platform (ORP)’ to support the Travel Rule recommended by the International Anti-Money Laundering Organization (FATF)
Kang Du Sik, Director of Bithumb AML Center said, “Through this system, we expect to create a safe trading environment and protect customer assets. We hope that we can share the system we built this time with other virtual asset providers so that we can jointly respond to the law and create a healthy ecosystem.”
Meanwhile, exchanges other than Bithumb are also strengthening the anti-money laundering system in preparation for the enforcement of the law. Upbit developed a new anti-money laundering (AML) solution on July 15th. The solution can be operated by unifying the member’s risk assessment reflecting the risk management items obtained as a result of consulting and the member management according to the level of risk in a single system, with the customer identification system (KYC) filtering function that was performed in its own system. In addition, the procedure for extracting and reporting suspicious transactions, which corresponds to the type of suspicious transaction calculated in the consulting process, was extracted and the person in charge analyzed it and reported it to the Financial Information Analysis Agency. In this process, Upbit exchange developed an external solution that was previously introduced to enable the extraction of suspicious transactions that reflect the characteristics of digital assets.
Korbit exchange, one of the four major exchanges along with Bithumb and Upbit, announced on June 17 that it signed a contract with Able Consulting and AML consulting and system construction to strengthen the anti-money laundering system at the level of the financial sector. Binance KR announced in May that it will strengthen its anti-money laundering system by introducing an Octasolution system such as Bithumb.
번역: 김동우 기자
