Scorechain – Leveraging an All-In-One Solution for Crypto Asset Compliance

In recent years, cryptocurrencies have gained widespread acceptance as investment vehicles among corporations, governments, and private citizens. However, alongside their positive impact, there are concerning issues that need to be addressed. Inadequate AML compliance procedures in crypto firms have made them vulnerable to exploitation by money launderers who utilize digital currencies such as Bitcoin.

As cryptocurrency marketplaces expand, the volume of money being laundered through these platforms has also grown. In response, regulatory requirements from politicians and financial agencies have intensified. Governments worldwide are grappling with ways to control the industry, ranging from imposing restrictions to outright bans. The concern is that the progress of crypto assets may become difficult to contain. Consequently, global and national regulators are continually announcing new regulations to address these challenges. To meet international standards, cryptocurrency companies and exchanges are now under pressure to implement comprehensive AML screening procedures.

Specialized in crypto-tracking compliance tools since 2015, Scorechain provides AML & Compliance solutions for cryptocurrencies. It serves customers worldwide, mainly cryptocurrencies companies, exchange platforms, OTC trading desks, ICOs, private banks, audit firms, and custodians. The company has helped more than 200 customers from 45+ countries. Scorechain Analytics suite includes Bitcoin analytics with Lightning Network detection, Ethereum analytics with more than 250,000 ERC20 tokens and stablecoins, Litecoin, Bitcoin Cash, Dash, XRP Ledger, Tezos, Tron with TRC20/TRC10 tokens, and BNB Smart Chain with BEP20 tokens.

All products are available both on UI and API, with full customization and reporting features. With a powerful and unique scoring system, Scorechain’s products allow traditional finance players and cryptocurrency companies to apply a risk-based approach for this new class of assets and fulfill all new regulation requirements.

Scorechain’s powerful and unique scoring system        

Scorechain Analytics: Scorechain Analytics tracks crypto assets and helps you create a structured and coherent approach to identifying, assessing and managing risk. Crypto-native companies and traditional financial institutions use Scorechain’s crypto-monitoring solution to build a proper strategy and satisfy crypto-AML requirements thanks to high-level features. The company provides risk scoring at the level of the address, transaction, and entity and for both incoming and outgoing funds, helping users understand the level of AML risk. The risk indicators can be configured to suit internal processes as well as the regulator local requirements.

Use reports to archive data and share specific information regarding an address or a transaction. The reports provide clear information about the activity for the address/transaction. Their alerts can be automatically implemented and triggered thanks to the API. Customers can create their own conditions and receive notifications in real-time as soon as there is a suspicious activity.

Exploration Tool: Conduct your thorough investigations on crypto wallets with their Exploration Tool. It is possible now to see clearly how several wallets interact with each other and how they are linked to certain kinds of illicit or suspicious activities. Users can have a clear visualization of the links between the investigated address and other addresses/wallets, or a specific entity type such as Hack, Scam, Darkweb, OFAC sanction list, etc. Besides, they can also investigate whether a wallet has to do with a certain behavior type (peeling chain, mixing patterns, etc) and in what way. The transaction flows among each other are displayed in an intuitive way so the compliance team can tackle the case efficiently.

Entity Directory: The most important thing for us is to provide the best data available, and that's why their entity directory gathers more than 700 VASPs due diligence. It allows customers to understand how Scorechain gives a risk scoring to a specific exchange platform. The customer can compare exchange platforms based on their risk assessment, onboarding policy, location, and regulations. The Entity Directory also allows customer to perform risk analysis on their counterparties to mitigate money laundering or terrorism financing risks. Customers can create their own systems with specific rules thanks to the alerts. They will receive notifications as soon as a condition has been triggered, and customers are notified in real-time and can take prompt measures if needed.

Case Manager: The best way to track a specific case is to track all the details of what has happened. With their Case Manager, you can seamlessly perform a risk-AML investigation and report suspicious activity & transaction. Customers within the same organization can share information (reports, notes, addresses, or transactions) and have a trail of the investigation. They can even export the case in PDF to have a clear view of what happened during the investigation and keep a proper archive. Customize risk indicators to red flag specific types, countries, and behaviors and strengthen your risk management. They are also fully adaptable to every internal policy and local requirement. Users can create their custom groups of addresses to have an organized view of what should be monitored. Custom labels can also be created for addresses and entities so that users can quickly recognize specific wallets.

About | Pierre Gérard

Pierre Gérard is co-founder and CEO of Scorechain. Pierre takes part regularly as a speaker in training&information sessions, round tables, conferences and working groups around cryptos and Blockchain.

Since 2000, Pierre has created several IT and Internet companies with innovative business models. He co-founded jamendo.com the biggest music library under creative commons licences and he has managed the company until 2014. He was also the co-founder of Neofacto an IT services company active mainly in Luxembourg and France. Pierre holds a Master's degree in IT.

“With a powerful and unique scoring system, Scorechain’s products allow traditional finance players and cryptocurrency companies to apply a risk-based approach for this new class of assets and fulfill all new regulation requirements.”