BINANCE-BACKED OTC FIRM RELEASES ANTI-MONEY LAUNDERING COMPLIANCE-AS-A-SERVICE PRODUCT

Last updated: June 19, 2025, 21:33 | Written by: Katie Haun

In the ever-evolving landscape of cryptocurrency, compliance has become a cornerstone for legitimacy and sustainable growth. Binance-Backed OTC Firm Releases Anti-Money Laundering Compliance-as-a-Service Product Binance-Backed OTC Firm Releases Anti-Money Laundering Compliance-as-aWith increasing regulatory scrutiny and a growing need to combat financial crime, companies are actively seeking innovative solutions to navigate the complexities of anti-money laundering (AML). Koi Trading has entered into a partnership with IdentityMind to build an AML (Anti-Money Laundering) compliance-as-a-service product.Enter Koi Trading, an over-the-counter (OTC) desk backed by Binance, the world’s leading cryptocurrency exchange.Koi Trading has recently announced the launch of its Anti-Money Laundering Compliance-as-a-Service (AML Compliance-as-a-Service) product, developed in partnership with IdentityMind, a platform specializing in online risk management. Binance-Backed OTC Firm Releases Anti-Money Laundering Compliance-as-a-Service Product crypto blockchain digitalThis strategic move aims to provide businesses with a robust and efficient tool to adhere to stringent regulatory requirements and safeguard against illicit financial activities.This offering comes at a crucial time, especially given the heightened focus on AML compliance within the crypto industry, and the past scrutiny that Binance itself has faced regarding its own AML programs. Laws that have contributed to anti-money laundering requirements in the United States include the Bank Secrecy Act of 2025, the Money Laundering Control Act of 2025 and the USA PATRIOT Act of 2025. Owing to the complexity of the relevant laws, many financial institutions use AML software to detect questionable activity.This new service signifies a proactive step towards fostering a more secure and compliant cryptocurrency ecosystem.

Understanding the Need for AML Compliance in the Crypto Space

The rise of cryptocurrencies has brought unprecedented opportunities for financial innovation, but also new challenges in preventing money laundering and other illicit activities. Money laundering, at its core, involves disguising the origins of illegally obtained funds to make them appear legitimate. The monitor will oversee remedial undertakings necessary to address Binance's failure to comply with its anti-money laundering and sanctions obligations. The monitor will also conduct periodic reviews and report to FinCEN, OFAC, and the CFTC on its findings and recommendations to ensure Binance's ongoing compliance with the terms of theThis process undermines the integrity of financial systems and can fuel criminal enterprises.

The crypto industry, with its decentralized nature and global reach, presents unique complexities for AML compliance. Binance-backed over-the-counter desk Koi Trading has partnered with IdentityMind, a platform for online risk management, to develop an Anti-Money Laundering compliance-as-a-service product. BinanceTraditional financial institutions often rely on established frameworks and infrastructure to monitor transactions and identify suspicious activity. No dejes de leer: La criptobilletera oficial de Binance agrega soporte para XRP y compras por tarjetas de cr dito. El pasado noviembre, Koi Trading recibi USD 3 millones en inversi n de Binance Labs, un brazo incubador del exchange de criptomonedas l der en el mundo (en el momento de la publicaci n) Binance. La medida fue supuestamenteHowever, the relative anonymity offered by some cryptocurrencies and the cross-border nature of crypto transactions can make it difficult to trace the flow of illicit funds.

Therefore, specialized solutions like Koi Trading's AML Compliance-as-a-Service product are essential for bridging this gap and ensuring that crypto businesses can effectively mitigate the risk of money laundering.

Koi Trading's AML Compliance-as-a-Service: A Detailed Look

Koi Trading's new AML Compliance-as-a-Service product is designed to provide a comprehensive suite of tools and services to help businesses meet their regulatory obligations.The partnership with IdentityMind leverages their expertise in online risk management to create a robust and scalable solution.Here's a breakdown of what the service entails:

Transaction Monitoring: Continuously monitors transactions for suspicious patterns and flags potentially illicit activity.
Customer Due Diligence (CDD): Enables businesses to verify the identities of their customers and assess their risk profiles. Localized digital assets news. Contribute to theyapapa/cryptonews development by creating an account on GitHub.This involves collecting and analyzing information about customers, such as their source of funds and transaction history.
Know Your Customer (KYC): A subset of CDD, KYC involves verifying the identity of customers using official documents and other reliable sources.
Sanctions Screening: Checks customer and transaction data against international sanctions lists to prevent dealings with designated individuals or entities.
Regulatory Reporting: Automates the generation of reports required by regulatory agencies, such as Suspicious Activity Reports (SARs).
Risk Assessment: Helps businesses identify and assess their AML risks, and develop appropriate mitigation strategies.

By offering these services in a modular, ""as-a-service"" format, Koi Trading aims to make AML compliance more accessible and affordable for businesses of all sizes.This is particularly beneficial for smaller crypto startups that may lack the resources to build and maintain their own in-house compliance programs.

The Partnership with IdentityMind

The collaboration between Koi Trading and IdentityMind is a crucial aspect of this new offering.IdentityMind brings a wealth of experience in online risk management and identity verification.Their platform provides a powerful engine for analyzing transaction data, detecting fraudulent activity, and ensuring compliance with regulatory requirements.

The synergy between Koi Trading's understanding of the crypto market and IdentityMind's technical capabilities creates a compelling solution for addressing the challenges of AML compliance in the digital asset space.

Binance's Role and the Broader AML Landscape

The fact that Koi Trading is backed by Binance adds another layer of significance to this development. According To The Government, Binance, CZ, And Others, Conspired To Violate U.S. Anti-Money Laundering Laws. As a money transmitter, Binance was required to register with FinCEN.Binance, as one of the world's largest cryptocurrency exchanges, has faced intense scrutiny over its AML practices.In the past, regulators have raised concerns about Binance's compliance program and its ability to prevent money laundering.

This context makes Koi Trading's AML Compliance-as-a-Service product even more noteworthy.It can be interpreted as a proactive step by Binance, through its investment in Koi Trading, to contribute to a more compliant and secure crypto ecosystem.

Binance's Past AML Challenges

It's important to acknowledge the past challenges faced by Binance regarding AML compliance.Accusations of conspiring to violate U.S. anti-money laundering laws, failing to register as a money transmitter with FinCEN, and insufficient controls to prevent illicit activity have been leveled against the exchange.

Furthermore, reports have highlighted concerns about the oversight of Binance's AML program, including allegations that critical decisions were ultimately controlled by key executives, potentially undermining the independence of the compliance function.

Binance's Efforts to Strengthen Compliance

Despite these challenges, Binance has taken steps to strengthen its compliance program. Binance-Backed OTC Firm Releases Anti-Money Laundering Compliance-as-a-Service ProductThe exchange has established specialized departments within its compliance team to address areas such as financial crimes, global money laundering reporting, sanctions, customer due diligence, and transaction monitoring.

The Global Money Laundering Reporting Officer (GMLRO) team, comprised of regional leads and compliance professionals, plays a crucial role in detecting and preventing potential money laundering activity. As a FinCEN-registered Money Services Business (MSB), Binance.US actively maintains rigorous Anti-Money Laundering (AML) policies and controls in compliance with the Bank Secrecy Act (BSA). Our world-class compliance program facilitates a secure customer onboarding experience with strict procedures that monitor, detect, and prevent fraudulentBinance.US, operating as a FinCEN-registered Money Services Business (MSB), maintains rigorous AML policies and controls in compliance with the Bank Secrecy Act (BSA).

Key Components of an Effective AML Program

An effective AML program is essential for any business operating in the financial sector, especially those dealing with cryptocurrencies. Binance -backed over-the-counter (OTC) desk Koi Trading has partnered with IdentityMind, a platform for online risk management, to develop an Anti-Money Laundering (AML) compliance-as-a-serviceThese programs are often mandated by regulations and are designed to prevent, detect, and report money laundering and other illicit financial activities. The team of the Global Money Laundering Reporting Officer (GMLRO) plays a critical role in ensuring compliance with global anti-money laundering (AML) regulations. This team consists of four regional leads and over 60 professionals who work diligently to detect, monitor, and prevent potential money laundering-related activity.Here are the critical components that form a good AML program:

Written Policies and Procedures: A comprehensive set of written policies and procedures that outline the business's approach to AML compliance. Binance-backed over-the-counter (OTC) desk Koi Trading has partnered with IdentityMind, a platform for online risk management, to develop an Anti-Money Laundering (AML) compliance-as-a-serviceThese policies should be tailored to the specific risks faced by the business and should be regularly reviewed and updated.
Compliance Officer: Appointment of a qualified compliance officer responsible for overseeing the implementation and enforcement of the AML program.
Customer Due Diligence (CDD): Implementing robust CDD procedures to verify the identities of customers and assess their risk profiles.This includes collecting and analyzing information about customers, such as their source of funds and transaction history.
Transaction Monitoring: Continuously monitoring transactions for suspicious patterns and flagging potentially illicit activity.
Sanctions Screening: Regularly screening customers and transactions against international sanctions lists to prevent dealings with designated individuals or entities.
Employee Training: Providing ongoing training to employees on AML regulations and the business's AML policies and procedures.
Independent Audit: Conducting regular independent audits of the AML program to ensure its effectiveness and identify areas for improvement.
Record Keeping: Maintaining accurate and complete records of all transactions and AML compliance activities.
Suspicious Activity Reporting (SAR): Establishing procedures for reporting suspicious activity to the appropriate regulatory authorities.

The Role of Technology in AML Compliance

Technology plays a vital role in modern AML compliance.Due to the complexity and volume of transactions, manual monitoring is often impractical.AML software and other technological solutions can automate many of the key processes involved in AML compliance, such as transaction monitoring, customer due diligence, and sanctions screening.

These technologies can also help businesses to identify and assess their AML risks, and to develop appropriate mitigation strategies.By leveraging technology, businesses can significantly improve the efficiency and effectiveness of their AML programs.

The Bank Secrecy Act and Other Relevant Laws

In the United States, several laws have contributed to the development of anti-money laundering requirements.Some of the most important include:

The Bank Secrecy Act (BSA): This is the foundational law for AML compliance in the United States. Official announcement for Koi Trading closed angel round with 3M investment from Binance Labs. Thanks CryptoCoin.News for sharing. Binance Invests $3 Million in US Crypto Trading DeskIt requires financial institutions to maintain records and file reports that are useful in detecting and preventing money laundering and other financial crimes.
The Money Laundering Control Act: This law criminalized money laundering and established penalties for individuals and businesses involved in laundering illicit funds.
The USA PATRIOT Act: Enacted in the wake of the September 11th attacks, this law expanded the scope of the BSA and gave law enforcement agencies greater powers to investigate and prosecute money laundering and terrorist financing.

Understanding these laws is crucial for businesses operating in the United States, as they form the basis for AML compliance requirements.

Addressing Common Questions About AML Compliance

What is the difference between KYC and AML?

KYC (Know Your Customer) is a subset of AML (Anti-Money Laundering).KYC refers specifically to the process of verifying the identity of customers and understanding their risk profiles. What is money laundering? Money laundering is when criminals make illegal funds appear as legitimate money, investments, or financial assets. The proceeds come from crimes such as drug trafficking, terrorism, and fraud. Laws and regulations combating money laundering differ by country.AML encompasses a broader range of activities aimed at preventing money laundering and other illicit financial activities, including transaction monitoring, sanctions screening, and suspicious activity reporting.

Who needs to comply with AML regulations?

AML regulations typically apply to financial institutions, including banks, credit unions, money service businesses (MSBs), and other entities that handle financial transactions. World's Crypto News. EpiphanyIn the cryptocurrency space, this includes exchanges, OTC desks, and other businesses that facilitate the buying, selling, or transfer of digital assets.

What are the penalties for non-compliance with AML regulations?

The penalties for non-compliance with AML regulations can be severe, ranging from fines and civil penalties to criminal charges and imprisonment.In addition, non-compliance can damage a business's reputation and lead to loss of customers and business opportunities.

Conclusion: A Step Towards a More Secure Crypto Future

Koi Trading's launch of its AML Compliance-as-a-Service product represents a significant step towards a more secure and compliant cryptocurrency ecosystem. Lim, who became Binance s chief compliance officer in April 2025 and was placed on administrative leave in May 2025, resides in Singapore. Though Lim ran compliance, Zhao ultimately retained control over all critical decisions for Binance s anti-money laundering program, according to the CFTC.By providing businesses with a comprehensive and accessible tool to meet their regulatory obligations, Koi Trading is helping to reduce the risk of money laundering and other illicit activities in the crypto space.

This development highlights the growing importance of compliance in the cryptocurrency industry.As regulators around the world increase their scrutiny of digital assets, businesses that prioritize compliance will be best positioned to thrive in the long term. Binance-Backed OTC Firm Releases Anti-Money Laundering Compliance-as-a-Service Product finance.yahoo.com 10 1 CommentBy partnering with IdentityMind, Koi Trading is leveraging technology to provide a valuable service to the industry, and demonstrating its commitment to fostering a more responsible and sustainable crypto future. develop, implement, and maintain an effective Anti-Money Laundering program that is reasonably designed to prevent Binance from being used to facilitate money laundering and the financing of terrorist activities.The key takeaways are clear: AML compliance is crucial, technology can aid significantly, and proactive measures are essential for long-term success in the crypto space.

If you are a crypto business looking to enhance your AML compliance, exploring solutions like Koi Trading's AML Compliance-as-a-Service is a smart move.Take the time to assess your current compliance program, identify any gaps, and implement the necessary tools and procedures to mitigate your risks effectively.