The purpose of the Bank Santander to test blockchain analysis is to mitigate the risks related to this sector. Elliptic provided technical support for the tests using its Discovery tool.
The statement that informs about the completion of the test, issued on June 22nd by the British firm, states that this analysis will help Santander mitigate crimes related to this type of asset. The pilot tests were conducted using Discovery, a tool developed by the company to assess “the bank’s indirect exposure to cryptocurrencies” by tracking and analyzing transactions between clients and cryptocurrency exchanges.
This practice by Santander, one of the most important banks in the world in terms of market capitalization, is endorsed by the KYC (” Know Your Customer“) and AML (“Anti -Money Laundering ‘).
So far, it was not informed by either of the two companies involved in which countries the tests were carried out.
As reported by Elliptic, Discovery is a resource used by major financial firms around the world that uses advanced blockchain analytics to assess the risks of cryptocurrency exchanges at scale. It also contains a complete and accurate database and a collection of profiles of the platforms dedicated to cryptocurrency trading.
Simone Maini, CEO of Elliptic, stated that “this test demonstrates Elliptic’s commitment to helping financial institutions understand their exposure to crypto-assets and mitigate the risks of crypto-asset money laundering.” In this way, Maini argues, these companies can move confidently “in a rapidly changing and evolving ecosystem.”
“Elliptic is one of our oldest investments, and they have been a great partner at helping us navigate the complexities of the distributed ledger technology (DLT) and crypto world. We are excited to see Elliptic’s technology in collaboration with Santander to better understand and protect the bank’s business and customers.”Manuel Silva Martínez, general partner at Mouro Capital
Elliptic’s Discovery uses advanced blockchain analytics to perform counterparty risk assessments on crypto exchanges at scale. The solution was built using accurate and comprehensive crypto dataset offering over 97% coverage of crypto transactions by trading volume, along with the largest collection of crypto exchange risk profiles.
Santander seeks to match forces with FinTech
Banco Santander is focusing its efforts on competing against FinTech – technology companies that provide financial investment services and tools – but wants to do so on equal terms. For this reason, its CEO Ana Botín expressed at that time that the obligations imposed on banks to combat money laundering and other criminal practices should also be required of other companies.
In this sense, a study published by its current partner Elliptic in May 2020 details that less than 1% of the operations carried out with bitcoin (BTC) is illegal. Although no specific amount is provided, and it could be a lot of money, this figure is well below the 35% reported by other studies in 2012.
It’s currently used by some of the largest financial institutions globally and has helped them not only to meet regulatory requirements but also to achieve unparalleled efficiency gains within Financial Crime Operations and Compliance.
Elliptic is the global leader in crypto-asset risk management solutions for crypto businesses and financial institutions worldwide. Backed by investors including Wells Fargo Strategic Capital, SBI Group, and Santander Innoventures, Elliptic has assessed risk on transactions worth several trillion dollars, uncovering activities related to money laundering, terrorist fundraising, fraud, and other financial crimes. Elliptic is headquartered in London with offices in New York, Singapore, and Tokyo.