Onboarding Crypto Clients: AML & Due Diligence Solutions for Banks & Investment Firms

Navigate Crypto Compliance with Confidence

As cryptocurrency adoption grows, banks and investment firms face a critical challenge: ensuring compliance while onboarding clients with significant crypto holdings. With increasing regulatory scrutiny, how can you verify the legitimacy of a crypto millionaire’s wealth and mitigate AML risks?

Scorechain provides industry-leading blockchain analytics and risk assessment solutions, helping financial institutions perform robust due diligence and streamline onboarding while staying fully compliant.

Key Steps to Onboarding Crypto Clients

1. Know Your Customer (KYC) for Crypto Clients

Thorough identity verification is essential. Ensure compliance by collecting and validating:
✅ Legal name, birthdate, and address
✅ Government-issued ID
✅ Source of wealth and funds documentation

🔍 How Scorechain Helps:

• We have KYC partners that can work with us.

2. Customer Due Diligence (CDD) on Crypto Wealth

Go beyond basic KYC to assess the legitimacy of your client’s crypto assets:
✅ Verify their source of wealth
✅ Analyze transaction history for irregularities
✅ Assess risk exposure based on jurisdiction and counterparties

🔍 How Scorechain Helps:

• Advanced blockchain forensics to analyze transaction history
• Risk scoring based on real-time blockchain data
• Continuous monitoring of crypto wallets

3. Enhanced Due Diligence (EDD) for High-Risk Clients

For high-net-worth individuals and large crypto transactions, deeper scrutiny is required:
✅ Ongoing transaction monitoring
✅ Screening against global sanction lists
✅ Identification of high-risk behaviors

🔍 How Scorechain Helps:

• Real-time alerts for suspicious activities
• Integration with global AML watchlists
• Visual risk assessment dashboards

4. Anti-Money Laundering (AML) Compliance for Crypto

Regulatory bodies worldwide require stringent AML measures, including:
✅ Risk-based approach to customer onboarding
✅ Transaction monitoring and anomaly detection
✅ Compliance with FATF Travel Rule integration & local regulations

🔍 How Scorechain Helps:

• Automated AML screening for crypto transactions
• Risk flagging for transactions tied to illicit activities
• Custom compliance reporting for regulatory audits

5. Blockchain Analysis for Source of Funds Verification

Understanding the origin of a client’s crypto wealth is crucial to preventing financial crime.
✅ Trace crypto transactions across multiple wallets
✅ Identify links to illicit activities such as dark web transactions or ransomware
✅ Confirm whether funds originate from legitimate exchanges and businesses

🔍 How Scorechain Helps:

• AI-powered blockchain analytics for tracing transaction history
• Integration with 10+ major blockchains for comprehensive risk assessments
• Visual mapping of fund flows to identify potential risks

Why Financial Institutions Choose Scorechain

✔ Trusted by 250+ Financial Institutions worldwide
✔ Compliant with Global Regulations (FATF, EU AMLD, FinCEN, etc.)
✔ Seamless API Integration for banks, investment firms & compliance teams
✔ 24/7 Risk Monitoring & Reporting with real-time insights

Stay Ahead of Crypto Compliance Risks

The crypto market moves fast, and regulations are evolving. Don’t let compliance concerns slow down your business. With Scorechain, you can confidently onboard crypto clients while ensuring full AML compliance and mitigating financial crime risks.

🔹 Book a Demo Today

Frequently Asked Questions (FAQs)

Q: Can banks accept funds from crypto gains?
✅ Yes, but financial institutions must conduct due diligence to verify the legitimacy of the funds and ensure compliance with AML regulations.

Q: How can I verify the source of crypto wealth?
✅ Using blockchain analytics tools like Scorechain, you can trace transactions, analyze wallet activity, and assess risks associated with crypto funds.

Q: What AML checks are required for private banks onboarding crypto millionaires?
✅ Private banks must perform KYC, CDD, and EDD while leveraging blockchain forensic tools to monitor transactions and assess risks.

Ready to Strengthen Your Crypto Compliance?