We advise your company on a legal framework that adheres to Know Your Customer (KYC), Anti-Money Laundering (AML), and international sanctions rules.
Ensuring compliance with Know Your Customer (KYC), Anti-Money Laundering (AML), and sanctions laws is a significant task for businesses, particularly those in the financial sector. Regulations such as the Bank Secrecy Act (BSA), the USA PATRIOT Act, and the guidelines issued by the Office of Foreign Assets Control (OFAC) create a complex legal landscape that businesses must navigate carefully. KYC procedures are essential for financial institutions to confirm the identity of their clients, as mandated by regulations including the BSA and the PATRIOT Act. These procedures help businesses avoid being used to facilitate financial crimes. A robust KYC process includes steps such as customer identification and verification, understanding the nature of the customer's activities, and assessing potential risks of illegal intentions for the business relationship.
AML regulations, also enforced under the BSA and the PATRIOT Act, require businesses to implement systems that detect and report suspicious activities potentially related to money laundering or terrorist financing. Key aspects of a compliant AML program include establishing internal policies, procedures, and controls, designating an AML compliance officer, ongoing staff training, and independent program testing.
Sanctions compliance is another critical aspect, particularly for businesses with international operations or clients. The OFAC enforces economic and trade sanctions based on US foreign policy and national security goals. Therefore, companies must regularly screen clients and transactions against OFAC's Specially Designated Nationals and Blocked Persons List (SDN List) to ensure they are not inadvertently violating US sanctions.
KYC, AML, and sanctions compliance take on a new layer of complexity when your startup works with or has developed a digital asset, cryptocurrency, token, native platform token, STO, NFT, or utilizes any Web3 connected login to facilitate p2p transfers. Cryptocurrency transactions can be pseudonymous, global, and instantaneous, characteristics that can be exploited for illicit purposes. Regulatory bodies worldwide, including FinCEN and SEC in the U.S., have therefore issued guidance and regulations that extend to crypto assets. Businesses involved in the crypto space, such as exchanges and wallet providers, need to apply traditional KYC and AML processes to their operations, in addition to understanding and complying with evolving laws and guidelines specific to cryptocurrency.
At Goldstein Law, our experts are adept at navigating the intricate regulatory landscape of KYC, AML, and sanctions compliance. We have a deep understanding of this dynamic field and can provide legal guidance tailored to the unique challenges of KYC in the crypto. We provide businesses with comprehensive legal guidance on these matters, including designing robust compliance programs, providing training, and conducting regular program audits. Whether your business is a startup needing initial guidance or an established institution seeking to update its existing compliance programs, Goldstein Law can provide the legal expertise and experience you need.
"Goldstein Law helps us navigate a difficult regulatory environment that is constantly changing. We are very happy with their work."
"We hired Goldstein Law to write terms and conditions for our NFT project and build our DAO. Jeremy really understands blockchain and web3."
"Having Jeremy by my side has been a game-changer! He understands innovation in my industry, has helped me with fundraising, and kept my business compliant.
"What sets this law firm apart is their ability to take complex issues and distill them into understandable advice. As a founder, this has made my life much easier."
"I run a short-term rental company with over 100 properties and hired Jeremy as our corporate council. He goes above and beyond for our team."
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Trusted corporate and transactional attorneys for technology startups.
1312 17th Street, Suite #1646
Denver, CO 80202