The digital currency relies on computer algorithms to move money
without a central processing authority, but also risks
attracting illicit activities such as drug trafficking or money
laundering, according to EU law enforcement agency Europol.
"An increasing number of our customers among the Nordic banks
have asked for an effective tool to help them comply with
legislation," Kati Rintala, head of Nets' fraud division, said
in a statement.
Chainalysis, which also collaborates with Europol, can help
banks and law enforcement detect suspicious activity and link
digital identities to digital currency, it said.
"We can make risk assessments and analyze block chain
activities... And banks are interested in being able to
risk-score customers, so they do not end up being used for money
laundering," Chainalysis CEO Michael Gronager told Reuters.
"If a bank's customer is a risk, the financial institution can
choose to send a "suspicious transfer report" to the
authorities, which can use our tools to trace and identify the
customer," Gronager added.
Nets provides services to more than 240 financial institutions
in the Nordic region including Danske Bank, DNB and Nordea.
(Reporting by Nikolaj Skydsgaard, editing by Terje Solsvik)
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