IdentityMind Global Awarded New Patent on Sanctions Screening for Cryptocurrency Transactions
January 30, 2018
IdentityMind Global™, Digital Identities You Can Trust, today announced that the U.S. Patent and Trademark Office (USPTO) has granted IdentityMind a patent for enhanced sanctions screening. The patent describes and protects the integration of the company’s proprietary eDNA™ technology to reduce the risk of doing business with sanctioned individuals or identities that while not directly sanctioned themselves, are associated with sanctioned individuals.
The technology described within Patent No. 9,852,427 has already been implemented into IdentityMind’s platform that builds, maintains. and analyzes digital identities worldwide. This allows companies to perform identity proofing, risk-based authentication, regulatory identification, and to detect and prevent identity fraud.
“This latest patent highlights IdentityMind’s ongoing industry leadership in R&D investment and creation of intellectual property that drives business benefits to our global customers,” said Kieran Sherlock, CTO, IdentityMind. “This patent helps institutions determine if they are allowed to execute a financial or cryptocurrency transaction with individuals or other businesses.”
Cryptocurrencies – and the accompanying need for sanctions screening – are soaring. According to The Motley Fool, the combined value of more than 1,350 cryptocurrencies surpassed $500 billion in 2017. Correspondingly, IdentityMind witnessed similar high demand for its anti-money laundering (AML) solution including know your customer (KYC) and transaction monitoring, helping cryptocurrency exchanges meet sanctions screening and regulatory compliance requirements.
IdentityMind’s sanctions screening enables clients to choose among the most important international data sources – such as the Office of Foreign Assets Control (OFAC), Politically Exposed Persons (PEP), Consolidated list of EU financial sanctions, Japan End User List, and others – and a proprietary database with an extensive list of threat finance organizations and individuals, including terror financiers, state sanctions evaders, arms proliferators, and narco traffickers.
Sanctions screening and high-risk individual verification is a compliance requirement for institutions to (1) assess whether they are forbidden from working with potential clients and partners and; (2) know which clients that require enhanced due diligence and reporting.
The patent covers the IdentityMind platform’s ability to provide a comprehensive solution to address regulatory requirements associated with sanctions screening while reducing the operational burden created by it. IdentityMind expands current sanctions matching techniques by adding its own eDNA™ proprietary database of proven associations between users and businesses that have been derived from cryptocurrency transactions recorded in the blockchain. IdentityMind applies sophisticated techniques for disambiguation and reduction of false positives,including integrating historical, risk and entity link analysis. Additionally, the IdentityMind platform provides the operational tools to expedite the review process and the ability to record and report for regulators.
The net result is fewer and more accurate matches. The IdentityMind platform enables clients to go beyond existing sanctions lists, and provide far greater protection against potential nefarious users and businesses trying to hide between webs and layers of connections and relationships.
Previously issued IdentityMind patents include:
Patent No. 9,471,920 covers IdentityMind’s proprietary eDNA™ technology which describes an internet identity (individual or a merchant) by looking at attributes and how these attributes relate to each other. eDNA™ captures the behavior – good or bad – and aggregates it as a reputation score. IdentityMind utilizes eDNA and Trusted Digital Identities to help the the financial and cryptocurrency markets prevent fraud, comply with regulatory requirements, and detect suspicious activity related to anti-money laundering (AML) in real-time.
Patent No. 9,818,116 covers systems and methods for detecting relations between unknown merchants and merchants with a known connection to fraud. It’s extends IdentityMind’s core eDNA patent to not only include individuals but businesses.
About IdentityMind Global
IdentityMind Global, Digital Identities You Can Trust, provides a SaaS platform that builds, maintains and analyzes digital identities worldwide, allowing companies to perform identity proofing, risk-based authentication, regulatory identification, and to detect and prevent identity fraud. Built-in transaction monitoring enables e-commerce fraud prevention, anti-money laundering (AML), and counter terrorism financing (CTF). Our patented eDNA™ technology securely tracks the entities involved in each transaction (e.g. onboarding, account origination, money transfers, online payments, etc.) to build unique digital identity trust reputations. This reputation is anonymously shared between customers in IdentityMind’s Global Identity Network.
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