1. Why is crypto anti-money laundering compliance so important for financial institutions?
To cut a long story short: It’s the law.
Banks and financial institutions are legally required to adhere to laws and regulatory guidance to combat money laundering, terrorism financing and tax evasion — as well as manage their risk against these illicit financial activities.
Every legitimate bank and FI incorporates regulatory compliance and risk management into their short and long-term business plan and strategy as a matter of necessity, so when dealing with cryptocurrencies they would also need to incorporate crypto compliance.