EY helps clients create long-term value for all stakeholders. Enabled by data and technology, our services and solutions provide trust through assurance and help clients transform, grow and operate.
At EY, our purpose is building a better working world. The insights and services we provide help to create long-term value for clients, people and society, and to build trust in the capital markets.
EY’s Distributed Ledger Analysis (DLA) delivers a detailed, fact-based report that provides transparency into blockchain transactions, verifying asset control and tracing the Source of Funds (SoF).
Our solution empowers financial institutions to
ensuring regulatory confidence by complying with evolving regulations
reducing risk by having assessed and mitigated the onboarding risks of crypto clients
enhancing transparency by streamlining the onboarding process with data-driven insights
Discover how our DLA can support your compliance strategy today.
Regulatory pressure and uncertainty
Crypto regulations are constantly evolving, creating significant compliance challenges for banks. Institutions need a robust framework to effectively manage these changes and ensure adherence to legal requirements, thereby mitigating the risk of non-compliance and protecting their reputation.
Growing market demand
As the crypto industry expands, banks see significant opportunities. However, many remain hesitant to onboard clients from the crypto industry.
Compliance resource constraints
Compliance teams often juggle multiple regulatory priorities, leaving limited capacity for in-depth blockchain analysis or the development of specialized expertise.
Lack of standardized risk assessment
Traditional KYC/AML frameworks are not tailored for crypto, complicating risk assessment and SoF verification for banks.
Operational efficiency and risk mitigation
Banks require a fact-based report that enables efficient onboarding of legitimate crypto clients without increasing manual workload or uncertainty in compliance processes.
Regulatory expertise
Tap into EY’s in-depth understanding of KYC/AML standards and the ever-changing regulatory landscape. We provide timely, actionable solutions tailored to your compliance needs.
Advanced technology
Harness state-of-the-art blockchain analysis tools that provide comprehensive insights into on-chain activities, enhancing your visibility into crypto transactions.
Ongoing training
Engage in our interactive workshops designed to boost your team’s knowledge of crypto-assets, ensuring they are well-equipped to navigate related challenges effectively.
Trust
Our extensive experience serving a diverse range of clients has enabled us to establish strong benchmarks and maintain high service standards. Our EY professionals stay up-to-date with the latest technology and industry developments.
Initial request & information gathering
We provide a tailored template to collect essential documentation related to the client’s SoF, including KYC profiles, transaction history, wallet addresses, and supporting off-chain documentation. Information is securely exchanged via EY Canvas (our secure data sharing platform).
Comprehensive Blockchain Analysis
Using advanced analytics tools, we analyze on-chain and off-chain transactions, verifying investments, identifying trends, and mapping timelines to understand the client’s crypto-asset flow.
Control Over Digital Assets (CODA) verification
We conduct a de minimis test with a small crypto-asset transfer to confirm the client’s control over claimed assets.
Risk scoring
We assess potential risks using an integrated AML risk scoring model, evaluating entity-specific and as well as broader risks. Each wallet receives a comprehensive risk score based on fact-based insights.
DLA report preparation & review
The EY team compiles findings into a structured report, including a management summary, a detailed evaluation of crypto-asset activities, and a customized analysis aligned with your policy framework.
Report delivery & follow-Up
The final DLA report is securely delivered via EY Canvas with ongoing support for any follow-up questions or compliance clarifications.
Additional support offering
To further support your compliance needs, we offer additional services such as (non-exhaustive):
Policy framework drafting, review and training: Ensuring your team and processes are equipped for crypto-asset compliance.
Crypto-Assets Due Diligence: Evaluations of crypto-assets, exchanges, or crypto-related entities.
Smart Contract assessments: Verifying the security and functionality of blockchain-based Smart Contracts.
Let us help you navigate the complexities of crypto asset compliance with confidence.
