Aug 19, 2024

RegTech Analyst Moody’s and Elliptic enhance VASP screening with integrated data solutions August 19, 2024 Moody’s and Elliptic have announced a strategic partnership aimed at revolutionising virtual asset service provider (VASP) screening. This collaboration seeks to enhance the integration of on-chain blockchain data with traditional off-chain data sources. The partnership addresses the significant challenges financial institutions, crypto businesses, and governments face in anti-money laundering (AML) efforts amid the complexities of fiat currencies and digital assets such as Bitcoin and Ethereum. These challenges include navigating evolving regulatory landscapes, balancing various risks, and performing due diligence to prevent illicit activities. Moody’s and Elliptic have developed a joint approach to utilise on- and off-chain data programmatically at scale. On-chain data involves information recorded on blockchain networks, such as transaction histories, while off-chain data includes traditional sources like financial records and regulatory databases. This integration facilitates a unified compliance framework bridging traditional financial services and digital asset compliance. This solution leverages Elliptic’s real-time on-chain data, categorizing digital asset transactions’ exposure to illicit activities, combined with Moody’s extensive off-chain data within an integrated risk engine. It provides a comprehensive view of a VASP, aiding institutions in understanding their business partners and associated risks. Elliptic’s proprietary Holistic technology underpins the solution, assessing the risk of a VASP across various blockchains. This technology ensures up-to-date profiles for over 1,000 major VASPs, enabling a consolidated, risk-based compliance screening approach. The collaboration between Moody’s and Elliptic equips risk and compliance teams with necessary tools to address exposures to digital asset risks from sanctioned actors, terrorist groups, or money launderers, supporting an efficient compliance workflow accessible to those without blockchain expertise. “By joining forces with Moody’s as part of this strategic alliance, we are enabling financial institutions and crypto businesses to engage with VASPs safely and confidently. Combining Elliptic’s best-in-class on-chain risk analytics with Moody’s market-leading off-chain analytics provides our clients with a comprehensive set of tools to manage VASP risk more efficiently and effectively, allowing them to expand their business securely,” James Smith, co-founder of Elliptic, said. “Moody’s and Elliptic are coming together to address a burgeoning area of risk — enhancing risk analytics and insights by integrating on-chain and off-chain data. Our collaboration sets a new, global benchmark for managing AML compliance between fiat and cryptocurrency and helps address the complexities of an evolving digital economy,” Danielle Ferry, managing director of product strategy, Moody’s compliance and third-party risk management, said. Copyright © 2024 RegTech Analyst