2. AML and self-regulation as a tool for crypto companies and banks to facilitate their work interaction Adv. Yael Neeman Ben Ari CRO and Compliance Officer Bits of Gold ltd.
Former AML Compliance officer in Bank Leumi & Bank of Jerusalem
So What banks say?
The risk is unmanageable
In the next 20 min I will try to prove that the risk is manageable

3. What banks say? High Risk Activity
Unregulated - Money Laundering
Impossible to understand or manage the risk
No transparency
Impossible to understand or manage the source or the destination of the funds
Former AML Compliance officer in Bank Leumi & Bank of Jerusalem
So What banks say?
The risk is unmanageable
In the next 20 min I will try to prove that the risk is manageable

4. Former Fintec State of Mind: Regulation does not allow business
Former AML Compliance officer in Bank Leumi & Bank of Jerusalem
So What banks say?
The risk is unmanageable
In the next 20 min I will try to prove that the risk is manageable

5. Bits of Gold State of Mind: Regulation is Crypto startups’ best friend
Former AML Compliance officer in Bank Leumi & Bank of Jerusalem
So What banks say?
The risk is unmanageable
In the next 20 min I will try to prove that the risk is manageable

6. Bits of Gold is the first to file for FAP license
Certification
Check-list for risk management
Get the Regulator on Board
Dialogue regarding the policy and legislation
Ability to file SAR reports
Former State of Mind
Regulation gets in the way of Start Ups, Interferes with grows, Does not allows business
New Fintech State of Mind
Regulation is Crypto startups best friend – the only way to compete and be provide alternative
Set a checklist to risk managers – a frame for resource allocation
Government accountability
File SARs for risk management purposes
BOG firs to receive MSB license & first to file for the new license in Israel

7. Corporate Governance The Same as The Banks
Detailed Policy & Procedures
Board & Management Responsibility
Nomination of Compliance Officer
Annual Risk Assessment
External Audit & Compliance Testing
Training and Oversight
Same as bank

8. Onboarding Requirements Again- Same as The Banks
Thorough KYC & Customer Identification Program
Detailed Documentation Requirements
“Face to Face” or Technologically Equivalent Authentication
Customer Due Diligence
Proof for “Source of Funds”
Verification of Taxation Compliance
Same as bank

9. Monitoring & Reporting
Better than Banks
Risk Based Approach
Rule and Behavior-Based Transaction Monitoring
IP Geo-Location, Device Signature Monitoring
Real-Time Analysis, Post-Query Alerts, and Data Points
Screening During Onboarding & Prior to Each Transaction
Screening Against Sanction, PEP, Blacklists
Reporting SAR & CTR to FIU
Same as banks
FIU- Financial Intelligence Unit – IMPA in Israel

10. Banking Compliance Doesn’t Have Blockchain Monitoring
Real-Time Analysis of the Blockchain
Connect Bitcoin Addresses to Real World Services
Test Transactions with Bitcoin Exchanges and Darknet Markets
Sophisticated In-Depth Real-Time Blockchain Transaction Analysis
De-Anonymize Bitcoin Users
Used to Identify Illegal Gambling, Dark Markets, Ransomware, Mixers, Fraud
Available due to the unique transparency of blockchain
As a bank compliance officer I could only dream of this kind of technological functionality

11. Summary Cryptocurrency risk is much lower than cash
Regulators are onboard
Embrace technology – RegTech solutions
AML risk management with US is equal to the bank’s
Cash is untraceable period (no proof of customer statement) – Banks do cash
Regulators – US, New York, Gibraltar – new regulator acknowledges the industry every day
Bitcoin us based on technology, The answer to technological issues are technological solutions, New RegTech solutions are getting better and better

12. We Make The Risk Manageable
Cash is untraceable period (no proof of customer statement) – Banks do cash
Regulators – US, New York, Gibraltar – new regulator acknowledges the industry every day
Bitcoin us based on technology, The answer to technological issues are technological solutions, New RegTech solutions are getting better and better

13. Thank you! www.bitsofgold.co.il ☎ 03-613-3034 058-765-0643📧
Thank you and don’t hesitate to contact us in any means 