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Merkle Science, a leading predictive crypto risk intelligence platform, partnered with Finoa, a qualified crypto-asset custodian empowering institutions to engage with crypto assets safely and intuitively. The collaboration aimed to enhance Finoa's capabilities in monitoring transactions and supporting its expansion of the covered chains and tokens.
Finoa aims to improve their transaction monitoring and, given the business model, which involves offering custody for blockchains and tokens in their early stages, it was essential to find a provider with the flexibility to work within new and emerging ecosystems. This has led to a necessary review and adjustment of our processes to ensure compliance and maintain operational efficiency.
Finoa sought a comprehensive and efficient solution and found it in Merkle Science’s Compliance Solution Suite. By integrating the solution, Finoa benefited from:
● Extensive Chain and Token Coverage: Improving the coverage offered by one single tool and aligning with Finoa’s business model due to the continuous integration.
● Intuitive Dashboard: A user-friendly interface that simplified the monitoring processes.
● Advanced Transaction Monitoring: Robust tools for detecting and analyzing suspicious activities on the blockchain.
● Behavior Rule Engine: Intuitive policy and rule structure that is easy to modify based on the compliance requirements and risk-based approach. This feature is also useful for audit purposes, providing a comprehensive changelog and an overview of the rules generating the most alerts. Furthermore, the initial dashboard provides a clear overview of rules that generate the most alerts and the number of alerts created, which is extremely handy for compliance teams.
● Comprehensive Integration for Travel Rule: Integration with Finoa’s travel rule provider for regulatory requirements. Merkle Science's tool can screen blockchain addresses involved in transactions. This integration brings VASPs at the forefront of international regulatory standards for transactions of virtual assets (or crypto assets).
● Case Management Functionality: Enhanced task assignment and review processes, ensuring visibility and documentation of compliance activities. This functionality is especially useful for both team internal task assignments and audit purposes, allowing Finoa to document and display adherence to their policies effectively.
The partnership with Merkle Science has had a profound impact on Finoa's operations:
● Best-in-Class Compliance: With comprehensive token coverage and advanced monitoring functionalities, Merkle Science can offer Finoa the tools to stay at the forefront of the regulatory requirements.
● Efficiency Gains: The intuitive dashboard and automated features have drastically reduced the manual workload for Finoa's AML Compliance Team, saving significant resources.
● Enhanced Risk Management: Access to actionable insights and advanced forensic analysis has empowered Finoa to better manage and mitigate crypto-related risks.
● Streamlined Audits: The behavior rule engine and case management functionality have simplified audit processes, making it easier to document and display compliance activities. The ability to export and extract rule changelogs and other relevant data has been instrumental in maintaining regular audits and ensuring all compliance activities are visible and well-documented.
Merkle Science's collaboration with Finoa underscores the importance of robust crypto risk intelligence and comprehensive transaction monitoring. By addressing Finoa's challenges, Merkle Science has empowered them to enhance their compliance, streamline their processes, and better protect their institutional clients' assets.
