Banco Santander successfully completed a pilot test with Elliptic, a leading global company in blockchain analysis, for the detection of illegal activities related to digital assets.
The statement that reports on the completion of the test, issued on June 22 by the British firm, states that this analysis will help Santander to mitigate the crimes linked to this type of assets. The pilot tests were carried out 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” or ‘Know Your Customer’ in Spanish) and AML (“Anti -Money Laundering ‘or’ Anti-money laundering ‘). Until now, was not informed by either of the two companies involved in which countries the tests were carried out.
Elliptic announced the completion of the test phase with Santander on its Twitter account. Source: Elliptic / twitter.com
As reported by Elliptic, Discovery is a resource used by major financial companies 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.”
Santander seeks to match forces with FinTech
As CriptoNoticias reported in January 2021, Banco Santander is focusing its efforts on competing against FinTech —Technology companies that provide financial investment tools and services — but wants to do so on equal terms. For this reason, its CEO Ana Botín said 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 operations carried out with bitcoin (BTC) are illegal. Although no specific amount is provided, and it is clear that it could be a lot of money, this figure is well below the 35% reported by other studies in 2012.