The UK Financial Conduct Authority (FCA) has very clear requirements in relation to governance and policy management processes for cryptoasset businesses who are applying for the Anti-Money Laundering (AML) Registration[1].
GOVERNANCE ARRANGEMENTS & INTERNAL CONTROL MECHANISMS:
Crypto businesses must clearly demonstrate governance arrangements and the internal control mechanisms are in place which identify and assess the risk of money laundering and counter terrorist financing (CTF) and that these systems and controls are in place to mitigate the inherent and residual risks of financial crime.
AML & CTF FRAMEWORK & RISK ASSESSMENTS:
Crypto businesses need to clearly demonstrate and highlight the specific risks the business face and how these risks are actively managed. These controls must be clear and effectively aligned to the business and in-line with obligations contained within the Money Laundering Regulations. These obligations also include training requirements and material on AML & CTF requirements.
CEREBRO: AML & CTF POLICY RAILS FOR THE CRYPTOASSEST INDUSTRY
Cerebro is a ready-to-go solution that enables firms to apply AML regulations to protect consumers without stifling innovation, copy pasting rules, or failing to act due to a lack of timely guidance.
Cerebro cuts through the complexity of onerous registration processes by delivering a normalised set of requirements with jurisdictional variations in a single simple interface, enabling you to understand and efficiently operationalise your AML regulatory responsibilities.
HOW CEREBRO SUPPORTS CRYPTOASSET BUSINESSES
Cerebro has been supporting policy creation and management requirements with a number of high profile cryptoasset businesses.
Cerebro is an obligations register, policy authoring tool and regulatory rules repository. The solution comes with FCA requirements already mapped out as standard - giving crypto firms 90% of what they need out of the box with ongoing horizon scanning for changes, automating new uplift standards when they come in.
Around 85 per cent of crypto-asset firms who applied to the FCA were unable to demonstrate how they met the minimum standards required for registration under its anti-money laundering and counter-terrorist financing regime[2]. Firms are likely to be more successful in regulatory applications by using a platform such as Cerebro.
Contact us to find out more: info@jjcfintech.com
[1] https://www.fca.org.uk/firms/cryptoassets-aml-ctf-regime/registering [2] https://committees.parliament.uk/committee/158/treasury-committee/news/175634/treasury-committee-85-of-crypto-firms-failed-to-meet-minimum-standards-according-to-fca/#:~:text=Around%2085%20per%20cent%20of,and%20counter%2Dterrorist%20financing%20regime.
