Anti-Money Laundering Provider Netki Upgrading Service to Comply With FATF's Crypto 'Travel Rule'

  • KYC service provider Netki has announced an update to be 9in compliance with the FATF's new crypto guidelines. 
  • Controversial "travel rule" will require exchanges to collect and transfer client personal data. 

KYC anti-money laundering provider Netki has announced an overhaul in its digital ID service to incorporate the Financial Action Task Force’s controversial “travel rule” mandate for crypto exchanges. 

New Guidelines for Crypto Exchanges

According to the announcement made on Sept. 9, Netki has upgraded its TransactID to comply with the FATF’s strict regulations for combating money-laundering through cryptocurrencies and exchanges. Specifically, the upgraded service will allow for the break down of user certificates into smaller pieces of personally identifiable information and implement a service for senders and receivers of money to request such identifiers. 

The FATF ruling, which was passed in June amidst controversy and industry backlash, will make cryptocurrency exchanges responsible for users transferring funds between platforms. In addition to collecting extensive personal information on users, crypto exchanges will be required to share client information when transfers are initiated. While the FATF claims that such measures will combat money laundering, many industry analysts believe the mandate will hinder user privacy. 

Justin Newton, CEO of Netki, told CoinDesk, 

“Before, there was, like, one large, atomic transaction where each side shared all of the information about each other with each other. Now the protocol allows for more of a conversation where each side can request and share individual pieces of identity information with each other.”

While the FATF mandate is more a set of guidelines than by-laws, with a twelve-month deadline, the 37 member countries are expected to implement them through increased regulation leading up to June 2020. 

 

Photo via Pixabay.com

Over 5,000 Ugandan Citizens File Petitions Over Cryptocurrency Scam

Michael LaVere
  • Over 5,000 Ugandan citizens petitioned Parliament to issue a refund over funds lost in Dunamiscoins Resource Ltd. closure.
  • Cryptocurrency firm shuttered operation in late December, reportedly taking UGX 23 billion in client funds. 

Over 5,000 Ugandan citizens have petitioned Parliament following a high-profile scam by cryptocurrency firm Dunamiscoins Resource Ltd. 

According to a report by KMA Updates, more than 5,000 Ugandans submitted a petition seeking a refund over money invested in Dunamiscoins, which suddenly shuttered in December 2019. The fraudulent crypto firm billed itself as a privately owned company and claimed it was committed to providing complimentary crypto services to banks in order to benefit the low income and poor. 

In late 2019, Dunamiscoins’s bank account was suddenly frozen, with petitioners arguing that more than UGX 23 billion ($6.2 million) in client funds was locked in the firm. 

Arthur Asiimwe, de facto leader of the petitioners, told the Speaker and members of Parliament, 

[The] government licensed this company and gave it the go-ahead to work as a non-deposit taking financial institution; it carried out its duties as a microfinance company. They gave unrealistic bonuses.

Asiimwe and other petitioners argued that Dunamiscoins was operating as a microfinance company despite being registered as a non-deposit financial institution. While two of the company’s three directors have been arrested, Managing Director Susan Awoni remains at large. 

Asiimwe continued, 

We are not satisfied with what the Police report that they have failed to arrest the third director. We request that the Financial Intelligence Authority follows this up and trace where the money is and we are refunded.

Featured Image Credit: Photo via Pixabay.com