Elliptic and LexisNexis team up for Bitcoin risk management Written by Antony Peyton Blockchain intelligence firm Elliptic and LexisNexis Risk Solutions have partnered for the “first” use of “bank-grade” risk management for Bitcoin.Elliptic has integrated LexisNexis’s anti-money laundering (AML) risk management data into its Bitcoin transaction monitoring and compliance products.The two firms have built a proof-of-concept that uses financial intelligence data from LexisNexis and presents it alongside Elliptic’s proprietary risk scoring.Thomas Brown, SVP of US commercial markets and global market development at LexisNexis Risk Solutions, says: “As a result, the virtual currency potential evolves to a new level – from possible conduit for money laundering to trusted technology along the economic value chain.” The firms add: “While the underlying Bitcoin technology, blockchain, has gone mainstream, the financial services industry is still hesitant to embrace the full promise of Bitcoin and confidently provide banking relationships to Bitcoin companies.

The lack of financial transparency on Bitcoin entities continues to stymie the ubiquitous adoption of Bitcoin and other virtual currencies.” LexisNexis Risk Solutions is used by over 100 of the “top banks in the world”, and works with 80% of federal agencies in the US and has “very close ties” with the British Bankers Association (BBA) in the UK.The firms say this alliance will “allow banks to know exactly what the entity behind a Bitcoin transaction has done in the past, whether they’ve been convicted of drug trafficking, are on a sanctions watch-list or have funded terrorism”.The timing of the launch is interesting, as today (3 August) $72 million worth of Bitcoin was stolen from the Bitfinex exchange platform in Hong Kong.Nearly 120,000 units have been pilfered making it the second-biggest security breach ever of such an exchange.Bitcoin's link to crime is a growing worry, claims bank chief risk officer The biggest bank in the Nordic region says this month's ransomware attack underscores the need for lawmakers to look more closely at bitcoin's role in financial crime.Nordea Bank AB, whose chief risk officer, Julie Galbo, testified to the Danish parliament in response to questions about management's efforts to fight money laundering, says virtual currencies like bitcoin are making that battle harder to win."Bitcoin

is an unregulated and opaque currency that's often used in shady transactions," Galbo said.She says bitcoin represents a "big risk" standing in the way of efforts to fight money laundering because of the anonymity it affords those who use it.Bitcoin represents a "big risk" standing in the way of efforts to fight money laundering, claims bank chief risk officer.Nordea has been investigated by authorities in Denmark and Sweden for its failures to comply with anti-money laundering requirements.Last year, it was also responding to inquiries from the US government on alleged breaches of anti-money laundering rules that have already led to fines in Sweden.READ MORE: * Embarrassed companies hit by ransomware pay up, and keep it quiet * How to protect yourself from the global ransomware attack * A beginner's guide to bitcoin: What you need to knowThe bank, the only global systemically important financial institution in the Nordic region, featured prominently in the Panama Papers for allegedly helping rich clients hide their wealth from tax authorities.

Management, led by Chief Executive Officer Casper von Koskull, has tried to address the criticisms, adding hundreds of people to Nordea's compliance department.ethereum dollar cost averagingHackers in this month's Wannacry crisis gave those targeted 72 hours to pay $300 in bitcoin.bitcoin ledger hardwareGalbo, who used to work at Denmark's financial regulator, said "patterns of financial crime change constantly," making it increasingly difficult for those fighting it to do their jobs.bitcoin central piratéShe says working closer with the relevant authorities, including sharing knowledge, would help banks comply with the rules.Galbo said WannaCry, which affected more than 200,000 computers in at least 150 countries, is a clear example underscoring the need to treat bitcoin with suspicion.bitcoin clif high

The hackers gave those targeted 72 hours to pay $300 in bitcoin.If people refused to pay after seven days, their computers would be permanently locked.Galbo told lawmakers in the Danish parliament that aside from complying with the law, Nordea is "morally obliged" to do everything in its power to prevent its systems being used in connection with money laundering.While bitcoin was singled out for criticism, Galbo said the technology behind the payment form -- blockchain -- was something Nordea continues to view "very positively."bitcoin rpm centosAd Feedback Saved|Saved Stories Saved|Saved Stories Save|Saved Stories Save|Saved Storiesethereum chart audGhana’s Financial Intelligence Centre says the use of virtual markets and virtual currencies such as bitcoin and kitiwa is a severe risk to the country’s security.The assessment is based on available international records that show insurgencies have been funded from Ghana.

Saddled with combating money laundering and terrorist financing, the centre is now working to make Ghana the first country in West Africa to publish its national risk assessment.The country will also undergo the second phase of a regional mutual evaluation against money laundering in its readiness to fight the crime, added the centre’s CEO, Samuel Essel.The assessment, designed in September 2014 to prevent money laundering and combat terrorist financing, is in line with the recommendations of the Financial Action Task Force (FATF) for countries to identify, assess, and understand money laundering and combat terrorist financing risks within their jurisdiction and then take action and apply resources to mitigate them.More African countries are moving towards a cashless economy and more Africans are using Bitcoin particularly for its ease of use and transparency features.Nethertheless, official statements that tie various electronic payment platforms including bitcoin to money laundering and terrorism financing create doubts in the larger population that is yet to understand the disruptive tendency of the digital currency.

The situation has been worsened by the several plans mentioned by African governments to regulate bitcoin use across the region through relevant institutions with none having achieved anything concrete yet.Rather, lingering talks of impending policies have become another factor that has added to the low level of public awareness about bitcoin to aid lack of interest in Africa’s growing fintech sector.In a position paper on virtual currencies by the South African Reserve Bank, it described Bitcoin, LiteCoin and Ripple as decentralised virtual currencies, stressing that there is potential for real growth of bitcoin in its current operational environment.However, the bank added that the currencies are not legal tender to be used as payment for the discharge of any obligation in a manner that suggests they are perfect substitute of legal tender in any part of the country.The situation is the same in Kenya with Apex bank stating in December that no entity is currently licensed to offer money remittance services and products in Kenya using virtual currencies such as Bitcoin.

In Africa’s largest economy, Nigeria, its central bank has indicated its intention to regulate bitcoin use in the country specifically to deter its potential use for money laundering and terrorist financing.All these are coming at a time when the world’s largest money transfer firm, Western Union, is investing in Digital Currency Group which supports bitcoin and blockchain startups, so as to keep its “eye on innovation” according to Western Union’s chief technology officer, David Thompson.Hence, it is believed that, with time, bitcoin validation from Western Union and other such global firms will improve awareness among Africa’s tech-savvy generation and mitigate the various layers of negativity about the digital currency.Reassuringly, ongoing private sector initiatives will complement such efforts.In Ghana, for example, the FIC CEO mentioned the use of Bitcoin and Kitiwa as some of the most used mediums for money laundering since they use peer-to-peer technology with no central authority.