Template-Type: ReDIF-Paper 1.0
Author-Name: Iñaki Aldasoro
Author-X-Name-First: Iñaki
Author-X-Name-Last: Aldasoro
Author-Name: Jon Frost
Author-X-Name-First: Jon
Author-X-Name-Last: Frost
Author-Name: Sang Hyuk Lim
Author-X-Name-First: Sang Hyuk
Author-X-Name-Last: Lim
Author-Name: Fernando Perez-Cruz
Author-X-Name-First: Fernando
Author-X-Name-Last: Perez-Cruz
Author-Name: Hyun Song Shin
Author-X-Name-First: Hyun
Author-X-Name-Last: Song Shin
Title: An approach to anti-money laundering compliance for cryptoassets
Abstract: Existing anti-money laundering (AML) approaches relying on trusted intermediaries have limited effectiveness with decentralised record-keeping in permissionless public blockchains. The public transaction history on blockchains can enable AML and other compliance efforts, such as FX regulations, by leveraging the provenance and history of any particular unit or balance of a cryptoasset, including stablecoins. An AML compliance score based on the likelihood that a particular cryptoasset unit or balance is linked with illicit activity may be referenced at points of contact with the banking system ("off-ramps"), preventing inflows of the proceeds of illicit activity and supporting a culture of "duty of care" among crypto market participants.
Length: 8 pages
Creation-Date: 2025-08-13
File-URL: https://www.bis.org/publ/bisbull111.pdf
File-Format: Application/pdf
File-Function: Full PDF document
File-URL: https://www.bis.org/publ/bisbull111.htm
File-Format: text/html
Number: 111
Handle: RePEc:bis:bisblt:111