Chainalysis Further Expands Government Expertise with Global Policy and Government Affairs Executives
Chainalysis, the blockchain analysis company, has appointed Michael Mosier as Chief Technical Counsel. He joins Chainalysis after serving for over a decade in various government positions, including the Department of Justice (DOJ), Office of Foreign Assets Control (OFAC), the White House National Security Council, and most recently, the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN). Alongside former U.S. Department of Treasury and Refinitiv executives based in Washington, DC at Chainalysis, Mosier will be responsible for bringing legal expertise to our products, including data privacy and global anti-money laundering (AML), sanctions, policy, and government matters.
Mosier served as Chief of Strategic Advancement at FinCEN, prior to which he was Associate Director at OFAC, supervising the Office of Sanctions Policy & Implementation and the Office of Compliance & Enforcement. He was also Deputy Chief in the DOJ’s Money Laundering & Asset Recovery Section, where he led the Financial Intelligence Unit, and served a tour at the National Security Council as Director for Transnational Organized Crime.
Mosier will work closely with Jesse Spiro, Global Head of Policy, who recently joined Chainalysis from Refinitiv, where he oversaw global engagement and research on threat finance. Mosier and Spiro join Kristofer Doucette on the team based in Washington, DC and focused on Chainalysis’s government business. Doucette has been with the company since last year as Vice President of Government Affairs, having previously worked at the U.S. Department of the Treasury for over 14 years in financial intelligence.
“I am thrilled to join the incredible team at Chainalysis as the Chief Technical Counsel,” said Mosier. “Having worked across emerging technology, financial integrity, and data privacy matters, the opportunity to bring technical-legal solutions to market to help advance Chainalysis’s mission to build trust in blockchains and help our customers meet their regulatory obligations is the perfect intersection at a seminal moment for all of those areas.”
“Each of these appointments brings a wealth of financial intelligence, global policy expertise and leadership to our team that is critical to building trust among governments, cryptocurrency businesses, and financial institutions,” said Michael Gronager, CEO and Co-Founder of Chainalysis. “As we anticipate major global regulatory developments over the coming months, the strength of our team will ensure all our customers are fully equipped with the technology and information they need to comply with regulation and combat money laundering in cryptocurrencies.”
Chainalysis is able to detect criminal activity and suspicious financial connections, investigate criminal revenues, and leverage pattern recognition and open source references to identify suspicious activity across billions of cryptocurrency transactions. Chainalysis Reactor, the company’s cryptocurrency investigation software, helps law enforcement and financial institutions identify and stop bad actors using cryptocurrencies for illicit activities such as fraud, extortion, and money laundering. Chainalysis KYT (Know Your Transaction) enables cryptocurrency businesses and financial institutions to monitor large volumes of cryptocurrency activity and identify high risk transactions on a continuous basis by applying global AML standards to each transaction across all users within an organization’s user base.
In April 2019, Chainalysis closed its $36M Series B round led by Accel with participation from Benchmark, Sozu, and MUFG.
How Transaction Monitoring Works at Chainalysis
One of the reasons Chainalysis KYT is so popular is that it uses global anti-money laundering (AML) standards common across regulatory bodies. We apply these standards when each transaction is screened.
Cryptocurrency businesses also need to understand the aggregate risk profile of each of their users. That’s why Chainalysis KYT provides a view of risk profiles at the user level, which reflects all of a user’s screened transactions. For example, if an organization has a user who receives funds from a darknet market, our software automatically flags that transaction as high risk. If the user sends funds to a regulated exchange, our software marks that transaction as low risk. And so on. Every screened transaction feeds into a user’s risk profile. Chainalysis KYT displays all user profiles, sortable by high, medium or low risk (using traffic light colors) for easy scanning.
We apply our risk methodology in real time to all users within an organization’s user base. This saves compliance teams from laborious, manual screening work. They can instead focus on developing comprehensive compliance programs. Organizations that work with us tell us this has enabled them to meet regulatory expectations and launch or grow their businesses.
Customizable risk level
We’re now giving our customers the ability to adjust the risk level of a category or a service. For example, not all jurisdictions around the world treat gambling the same way. In some countries, gambling is not considered a legitimate business activity and thus online gambling sites would be treated as high risk. In other countries, gambling is not considered illicit, which means properly licensed online gambling sites would be treated as low risk.
The ability to customize the risk level of categories and specific services means our customers can automate even more of their compliance workflows.
One of the most useful facets of Chainalysis KYT is having a view of all users and their risk profiles directly accessible upon first logging in. It provides a visual alert of which users have high risk profiles and therefore require the most immediate attention. In keeping with the spirit of simplified visual cues, we have now launched a dashboard that summarizes key indicators at the total organization level. For example, organizations can now see what percentage of their user base is falling under high, medium or low risk. They will soon be able to see things like total exposure by category, or total transaction volume per day. These and other metrics will provide our customers additional understanding of their organization’s total exposure trends over time.
At Chainalysis, we strive to provide as much support to our customers as we can. To make it easier to interact with us, we added in-app chat to Chainalysis KYT. This allows our customers to send us questions or feedback without having to leave the environment. Our team typically responds within minutes.
We know software is most valuable when it makes the lives of our customers easier and more productive. This means we’ll continue to add intuitive capabilities to our compliance products while increasing versatility for ongoing transaction monitoring. In the coming months, we will improve how transaction information is displayed. We will also boost our monitoring capabilities for other cryptocurrencies beyond Bitcoin. And we will deepen the integration with Chainalysis Reactor, which is used for enhanced due diligence and investigations.
The momentum around cryptocurrency compliance is only just starting and we look forward to continuing to offer software that builds trust in blockchains.