You can now interact with VASP businesses confidently, enhance compliance team efficiency, and identify indirect exposure to cryptoassets. 

What is the VASP crypto risk check?

The Virtual asset service provider (VASP) crypto risk check provides an on-chain risk score that is available in Passfort using a third-party tool screening tool from Elliptic. By integrating Discovery, Elliptic’s VASP screening tool, Passfort can show a thorough risk profile for VASPs. This collaborative solution offers a comprehensive assessment of VASP risk, allowing you to analyze a VASP's on-chain risk exposure alongside other Moody’s off-chain risk indicators. 

The Elliptic Discovery tool analyzes a VASP's transaction links with sanctioned actors, illicit entities, and anonymizing services. It shows insights into the assets supported by a VASP and the presence of VASP compliance policies.  Additionally, it assesses the risk level posed by a VASP through the generation of a standardized on-chain risk score.

How it works

• Once you have configured the check, the VASP crypto risk compliance task is accessible on the profile page for an entity. 
• When the VASP crypto risk task runs, either manually or automatically from a Smart policy, the Elliptic Discovery tool generates a pass or fail outcome for the VASP. 
• The outcome is determined by comparing the on-chain risk score provided by Elliptic against a pre-defined threshold range (0-10) set during configuration. The higher the score, the higher the risk of the VASP’s on-chain exposure.
• The check result includes the specific on-chain risk score from Elliptic and a link to Elliptic's Discovery tool, for more in-depth analysis of the VASP.

VASP crypto risk outcome and a link to the VASP entity in the Elliptic Discovery tool.

Visual graphs available via the Elliptic Discovery tool highlighting the VASP’s exposure to licit and illicit counterparties and category types.

Configuration

• This solution is available to all Passfort customers as an optional add-on through Passfort Flex.
• The customer must have both Passfort and Elliptic Discovery to use this integration and it requires an Elliptic license key. Once configured, the integration can be used straight away. 

Out of scope

• Integration with other Elliptic products at this stage. 

Useful links from Elliptic

• What is a VASP? | Blockchain Basics | Elliptic
• The Importance of Knowing Your VASP in AML Compliance
• Banks onboarding VASPs: what you need to know

To learn more, you can also read Moody's brochure on VASP crypto risk.

If you'd like us to set this up for you, contact us.