How would AML techniques work in Ripple?

Can anyone explain how AML rules, alerting, and FinCEN reporting would work under Ripple?

goodguys_activate

Posted 2014-04-06T14:22:17.933

Reputation: 11 898

I would suppose it would only apply to gateways, and then it would be pretty clear? – Murch – 2014-04-10T13:26:26.203

@Murch I thought Ripple has a transitive property that masks the original transmitter and receiver (the "ripple"). In that case I would think it would complicate AML work, no? – goodguys_activate – 2014-04-10T13:39:20.470

mh, attempting an answer. – Murch – 2014-04-10T13:59:26.027

this article touches on Ripple and KYC: CoinDesk - Ripple Labs’ Grand Plan to Build a Global Payment Protocol

– Murch – 2014-04-14T00:41:50.230

Answers

AML is only applied to customer relationships. In this case that would be people that have an account with a gateway and are using said account to either deposit or withdraw massive amounts of money/crypto from the gateway.

It cannot apply to rippled balances, as you don't need to provide any information to another entity in Ripple in order to extend a trust line to said entity. I.e. there is no customer relationship in that case.

All of the above is AFAIK and IANAL.

Murch

Posted 2014-04-06T14:22:17.933

Reputation: 41 609