Risk Management

Our Approach to the Risk Management practices in Koinbay

Risk management is a continuous process, carried out on a dynamic basis. As user's activities develop, evolve or alter even outside the platform, so do their profiling alongside the services that Koinbay provides.

Hence, a robust compliance team is put in place, working round the clock together with the industry-leading technology service providers to enact CDD through KYC, KYB and KYT checks in adherence to FATF's framework towards AML/CFT/PEP/Individual and territorial sanctions screening in real time and daily status sync, for countering risks that can emanate from both current and new users.

The legal and compliance teams together maintain a continuing association with financial intelligence authorities while ensuring the framework enacted above are stringently followed in business operations. The teams also inspect the financial and virtual asset services on the exchange to mitigate risks.

Technologies for Compliance:

a) Sumsub | KYC, KYB

KYC provider Sumsub uses artificial intelligence-powered solutions to automatically manage identity verification, fraud prevention, implementation of KYC solutions, AML screening, and customer data storage to protect and enable regulated online business.

Sumsub is a multifaceted tool with the ability to collect users' video identification and exercise fraud prevention workflows. Sumsub enables the VASP to gain access to a wide variety of functions.

b) Chainalysis | KYT

Chainalysis KYT (Know Your Transaction) combines industry-leading blockchain intelligence with an easy-to-use interface and real-time API. It assists firms by reducing manual workflows, maintaining compliance with local and global regulations, and securely interacting with developing technologies.

Chainalysis KYT performs continuous transaction monitoring of all cryptocurrency assets. It is capable of detecting patterns of high-risk activity; preventing transactions with addresses identified on OFAC’s sanction list; freezing deposits from hacks or ransomware; screening ETH accounts; and more.

Some of the measures in KYT monitoring include:

• KYC diligence and CDD initiatives

• External wallet screening (before and after deposits & withdrawals)

• Pre-transaction and real-time transaction screening

• PEP and sanctions watch list response action.

These supervisions are performed by technology and an added tier of due diligence by in-house monitoring specialists.