CipherTrace, a blockchain forensics company, has said that a good number of the biggest commercial banks in the U.S. are processing up to $2 billion in crypto transactions without realizing it.

According to the company, the 10 biggest banks in the U.S. regularly process these crypto transactions for several companies with these payments going undetected. CipherTrace says the reason this can happen is that the institutions don’t have the kind of technology required to fish out these transactions.

CipherTrace has said that the funds in question, come from money service businesses (MSBs) that offer crypto services to its clients. At the moment, banks are required by the Financial Action Task Force (FATF), to report MSB transactions but this is currently difficult if the banks cannot identify some of these transactions, especially when they are crypto-based. The company says that these financial institutions will have to get the right technology to stay compliant with KYC and AML requirements.

CipherTrace constantly monitors crypto transactions and their blockchains, trying to fish out suspicious and irregular transactions. The company offers its services on at least 87% of all digital assets currently live.

Back in June, the FATF began to pay more attention to digital currencies with setting standards, and the creation of required guidelines to prevent the use of crypto for money laundering.

Image Credits: Pixabay

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