Although the client is based in the US, they have European subsidiaries which include the UK and therefore required Financial Conduct Authority (FCA) registration. In order to obtain registration as a crypto asset firm in the U.K. they had to comply with specific FCA requirements.
Crypto & Digital Assets
Financial Crime Framework Review and Enhancement
A review was required to assess whether the client's financial crime framework was fit for purpose and aligned with the Financial Conduct Authority (FCA) regulatory requirements to register and operate as a crypto asset firm in the UK. This called for a maturity assessment to depict the current state of a firm's controls and their level of regulatory compliance. It also benchmarks and tests against a firm's existing standards, global standards, and most importantly, against regulatory expectations.
Lysis provided the client with a detailed report that contained the findings of the review. They conducted a gap analysis against the firm's current approach to AML and current regulatory requirements which allowed the firm to gain a detailed and independent understanding of its AML governance framework and FCA requirements to register and operate in the UK. Consequently, with the support from Lysis, the crypto asset firm obtained full registration with the FCA to operate as a crypto asset firm in the UK.
Our client had identified a tranche of several thousand corporate and retail customers for which they wished to remediate the Know Your Customer (KYC) data held and to re-assess whether the interactions with the retail customers were compatible with Responsible Gambling requirements.
Recently implemented the banking system and needed additional BAU resources
Our client had been advised that their AML provisions were not up to the required standard and wished to remedy this before regulatory sanctions were imposed.
