TRM Labs and Finray Forge Integrated Crypto-Fiat Monitoring System

Financial technology companies TRM Labs and Finray Technologies have formed a strategic alliance to develop an integrated monitoring system for cryptocurrency and fiat transactions. This system will bridge the divide between traditional banking oversight and cryptocurrency surveillance, providing a holistic view of customer financial activity across all asset classes.

The EU's Markets in Crypto-Assets (MiCA) framework has driven the need for advanced technological solutions that can automate and ensure compliance with anti-money laundering (AML) and counter-terrorist financing (CFT) requirements. The TRM-Finray system is specifically designed to meet these complex requirements, generating a composite risk score for clients by analyzing behavior across both bank accounts and cryptocurrency wallets.

The integrated monitoring system will also feature real-time alerting for suspicious patterns, such as structured deposits or rapid movement of funds between asset types. This capability will enable financial institutions to detect cross-asset laundering and other illicit finance risks more effectively. Furthermore, the system will compile necessary data and generate standardized reports for filings required under MiCA and other global standards.

The TRM-Finray partnership reflects the broader trend where traditional and digital finance are converging. This convergence makes interoperable compliance tools essential for financial institutions navigating the complex requirements of MiCA and global AML standards. The system has significant potential to lower barriers for traditional banks and neobanks to offering crypto services, ultimately supporting the safe, legitimate integration of cryptocurrency into the mainstream economy.