United States KYC/AML Laws Apply to Blockchain
US laws and those of other countries require blockchain businesses to implement KYC/AML policies to combat money laundering and its underlying crimes (such as drug or human trafficking, illegal arms sales, corruption and terrorism).
KSTechLaw offers expert guidance to clients who may be subject to the relevant KYC/AML laws and regulations, including the Bank Secrecy Act and USA PATRIOT Act.
We provide a comprehensive suite of AML/KYC services, including:
- Evaluating business models, token offerings or specific transactions on a blockchain for KYC/AML compliance;
- Advising on blockchain forensic investigations as a part of KYC/AML measures (as described below);
- Educating clients about their KYC/AML obligations, such as developing an effective policy, hiring compliance officers, training personnel and reporting certain activities, including by filing suspicious activity reports (SARs);
- Evaluating clients’ existing KYC/AML measures and developing new or improved risk-based KYC/AML procedures and internal controls in accordance with the crypto industry’s best practices;
- Guiding clients through their KYC/AML polices’ implementation stage, reporting to and cooperation with the regulators, such as of the Office of Foreign Assets Control (OFAC), Financial Crimes Enforcement Network (FinCEN), New York State Department of Financial Services (NYDFS) and similar government agencies; and
- Helping clients resolve legal, practical, and other issues that arise in the course of conducting KYC/AML screening.
Forensics Legal Opinions, Reports and Investigations
As a part of blockchain legal due diligence, we advise on legality and traceability of blockchain assets. Doing so, we utilize our own experience in the digital-asset legal compliance, as well as the services within our vast network of experts, which include blockchain investigators, major cryptocurrency and digital security exchanges, trusts, traders and broker-dealers.
We employ the most reputable blockchain investigators to track every bit of information available on a blockchain. Our blockchain investigative partners also consult FBI fighting cybercrimes in the blockchain space.
Upon completion of our legal due diligence and independent investigation, we may issue legal opinions and blockchain forensic investigative reports, so that our clients or governmental agencies have a complete understanding of the issue.
Our blockchain forensics legal expert opinions and investigative reports may contain:
- detailed account of a client’s or counterparty’s flow of cryptocurrency or other digital assets on a blockchain;
- assessment of sufficiency of cryptographic private keys, public records and other factors establishing ownership of cryptocurrency or other digital asset on a blockchain;
- KYC/AML compliance measures taken at each point of the funds’ journey by clients and third parties, including exchanges and OTC traders;
- legal opinion on adoption, traceability, exchangeability and legality of a particular kind of digital asset existing on a blockchain;
- regulatory framework for cryptocurrencies and other blockchain assets in the U.S., etc.
Our blockchain forensics legal expert opinions and investigative reports are an effective tool, which may be essential in, for example:
- conducting due diligence of a cryptocurrency transaction, background check or KYC/AML compliance;
- investing into digital securities;
- making a purchase, sale or investment using cryptocurrency or other digital assets;
- demonstrating legality of your digital-asset holdings to the USCIS, IRS or other governmental agency.
Contact Us to Learn More About Our Blockchain Forensics Expert services.