Crypto-Asset Service Providers
Bridging Fiat and On-Chain Compliance
Diliguard provides AML compliance intelligence for crypto-asset service providers that combines fiat banking compliance with on-chain forensics. The engine correlates traditional identity verification with cryptocurrency wallet telemetry to intercept illicit funds before they exit the ecosystem.
The Compliance Mandate
Under Regulation (EU) 2024/1624 (the AMLR), crypto-asset service providers are explicitly brought into the EU obliged-entity regime, closing a gap that previously left parts of the sector under lighter national rules. CASPs must perform customer due diligence on both fiat and crypto-native onboarding, identify beneficial owners of corporate clients at the 25% threshold, monitor wallet activity on an ongoing basis, and file suspicious activity reports. Compliance teams operate at the intersection of heavily regulated fiat banking and decentralized blockchain networks, defending against sophisticated intrusion syndicates and darknet money laundering operations while keeping onboarding fast enough for retail users.
Diliguard’s Application for Crypto-Asset Service Providers
1. Automated Fiat Onboarding
Diliguard’s AML Compliance & PEP Screening engine uses entity resolution to verify users instantly. By cross-referencing global watchlists against localized data leaks, the system separates administrative noise from genuine threats during the fiat onboarding phase.
2. Wallet Risk Scoring
Before processing withdrawals, Diliguard’s Crypto & Digital Asset Investigation tools evaluate the destination wallet. The engine assigns an exact risk probability score by checking against known darknet markets, sanctioned entities, and high-risk mixing services.
3. Corporate Client and Institutional UBO Resolution
When onboarding institutional trading desks or corporate custody clients, Diliguard’s Corporate KYB & Global Registry Checks engine extracts exact shareholder percentages to identify the beneficial owner behind the corporate account, closing a route sanctioned actors use to trade through a clean corporate wrapper.
4. Deposit and Withdrawal Pattern Scoring
Diliguard’s Transaction Risk Scoring evaluates fiat deposit and crypto withdrawal sequences together, flagging accounts that convert fiat to crypto and withdraw immediately in a pattern consistent with rapid off-ramping of illicit funds.
A Day in the Life: The Exchange Compliance Officer
Scenario: A newly verified user attempts to withdraw a large sum of Bitcoin to an external address.
- Risk Trigger: Diliguard’s Crypto & Digital Asset Investigation module intercepts the withdrawal request.
- On-Chain Forensics: The system analyzes the destination wallet’s transaction history, identifying a two-hop linkage to a sanctioned mixer service.
- Pattern Correlation: Transaction Risk Scoring confirms the deposit-to-withdrawal timing matches a known off-ramping pattern.
- Automated Interception: The API freezes the withdrawal and flags the account for immediate regulatory reporting.