Monitoring and Sanctions
The Plume Network takes compliance seriously, particularly in the realms of Anti-Money Laundering (AML) and adherence to sanctions such as those enforced by the Office of Foreign Assets Control (OFAC). This section delves into the importance of AML, the role of sanctions, and the specifics of transaction monitoring and network analysis within blockchain platforms.
Understanding AML and Sanctions
Anti-Money Laundering (AML): AML refers to the set of laws, regulations, and procedures intended to prevent criminals from disguising illegally obtained funds as legitimate income. In the context of blockchain and cryptocurrency, AML involves monitoring and reporting activities to prevent and detect money laundering through digital assets.
Sanctions (OFAC): OFAC, part of the U.S. Department of Treasury, administers and enforces economic and trade sanctions based on U.S. foreign policy and national security goals. Compliance with OFAC sanctions involves ensuring that the Plume Network is not used to transact with sanctioned individuals, countries, or entities.
Transaction Monitoring
Transaction monitoring in the Plume Network involves scrutinizing all transactions to detect unusual or suspicious activities that might indicate money laundering, fraud, or violations of sanctions. Effective monitoring can identify anomalies, unusual patterns, and red flags that warrant further investigation.
Network Analysis
Network analysis extends beyond individual transactions, examining the broader network of interactions and connections on the blockchain. This analysis is crucial for understanding the flow of funds, identifying high-risk participants, and uncovering complex schemes that might involve money laundering or sanction violations.
Monitoring Providers
To uphold our AML obligations and sanction compliance, Plume Network partners with leading providers in transaction monitoring and network analysis:
Predicate: Real-time flow of funds checks powered by the Predicate Network’s programmable and decentralized Social Graph or through risk scores powered by TRM, Elliptic, Crystal, and other blockchain analytics providers. Predicate offers seamless smart contract-level integration for AML checks and sanctions screening.
Chainalysis: Offers comprehensive blockchain analysis tools for monitoring transactions, identifying risks, and ensuring compliance with AML and sanction regulations.
Elliptic: Specializes in blockchain analytics for risk management, providing solutions for transaction and sanction monitoring to comply with global AML standards.
CipherTrace: Known for its advanced blockchain forensics and cryptocurrency intelligence, CipherTrace provides AML solutions, sanctions screening, and financial investigations.
Scorechain: Provides blockchain analytics for transaction monitoring, focusing on AML compliance, risk assessment, and sanction screening for crypto assets.
Implementing Monitoring and Sanctions Compliance
Choose a Monitoring Provider: Evaluate and select a monitoring provider that aligns with your AML and sanction compliance needs.
Integrate with Plume Network: Utilize APIs or other integration methods to incorporate the provider's tools into the Plume Network, ensuring seamless transaction monitoring.
Stay Updated with Regulations: Regularly update your understanding of AML and OFAC sanctions to ensure compliance with the latest regulatory changes.
Educate Users: Inform your users about the importance of AML and sanctions compliance and how it affects their transactions on the network.
By implementing robust monitoring and sanction compliance mechanisms, Plume Network ensures a secure, lawful, and trustworthy platform for all its users.
Last updated