KYC/AML Solution

01Why KYC/AML is mandatory?

Money laundering through Cryptocurrency in a blind spot of Crypto Finance

Cryptocurrency Exchanges Have Been Used to
Launder $88 Million Since 2016: WSJ

(For the past two years, about KRW 98.5 billion laundering has occurred through the cryptocurrency exchange)

-Wall Street Journal Press 2018-

FATF (Financial Action Task Force )


"Further guidance on regulatory standard and its applications will be issued by June 2019 to prevent cryptocurrency from being abused for crimes and terrorism."

- Travel Rule -

"We will check the implementation of regulations by member states through periodic reviews and add those countries which fail to abide by the regulations will be added to the blacklist, restricting their access to the global financial system."

- Marshall Billingsla FATF Representative -

02How is KYC/AML being done?

Customer/Entity AML Screening(Anti-Money Laundering Screen of Customer/Entity)

It is a method of screening which includes customer verification, money laundering,
and economic crime information at the time of service registration for individual or
corporation to use cryptocurrency service. USEB carries out KYC/AML utilizing the
extensive DB of Dow Jones Risk & Compliance.


Suspicious Transaction Monitoring and Reporting

Real-time monitoring of transactions for suspicious money laundering as defined by
FATF or FIU, do an EDD of the owner (or corporation) of the account in case of a
suspicious transaction and the process of clarifying the source and use of the funds is
carried out.


※Example screen for service description and actual service pages supplied may vary.

Global Crypto Finance AML Compliance Monitoring

The global AML regulations for cryptocurrency are being established currently, so we
need to continually update global standard regulations and come up with legitimate
(Comply with FATF, FIU and Financial Services Commission standards.)


KYC( Know Your Customer )

Identify the nationality and identity of the customer and determine if there are any investment risk
factors. This is mandatory for fundraising.

CDD( Customer Due Diligence )

A law firm conducts due diligence on Venture Capital for risks assessment related to money laundering
and terrorist financing at the time of investment from VC.

AML( Anti-Money Laundering)

Preventing illegal assets from concealing in order to disguise them as legitimate assets.
It is also applicable to the illegal transfer of funds in violation of the Foreign Exchange Transactions Act
as a method of tax evasion.

CFT( Combating the Financing of Terrorism )

Preventing the movement of funds between countries by bypassing them in an abnormal way for
terrorist financing. Countries frequently exposed to the dangers of terrorism consider this as of great

FATF( Financial Action Task Force )

It is an international organization for money laundering prevention.
The Financial Intelligence Unit (which records transactions worth KRW 20 million or more) is a domestic
institution that performs similar functions and supervises and manages the above issues.

FIU(Financial Intelligence Unit)

The Financial Intelligence Unit (FIU) collects and analyzes financial information, including reports of
suspected money laundering transactions, from financial institutions, and the single central administrative
organization that provides this information to law enforcement agencies, including the police. Currently, about 50 countries,
including most OECD members, have established and are operating the Financial Intelligence Unit (FIU).

EDD(Enhanced Due Diligence)

EDD is a more comprehensive investigation process for the protection of customers in case of suspicion
of money laundering. According to US regulations, EDD measures should be applied to account types
such as personal banks, correspondent accounts, and foreign banking institutions.

STR(Suspicious Transaction Report)

It is a regulation that requires financial institutions to report KRW transactions over 20 million involving
money laundering for specific crimes or suspected transactions for tax evasion using foreign exchange
transactions (receive, loan, guarantee, insurance, etc.) or dollar exchange transactions over 10 thousand
to the Financial Intelligence Unit (FIU), which was introduced in Korea in 2001.

VASP(Virtual Asset Service Provider)

VASP means a company that provides services using virtual assets. This includes all services that deal
with cryptocurrencies, such as exchange or wallet service providers that handle blockchain-based