How PwC Germany Combats Money Laundering in Crypto Space with Neo4j

The Financial Action Task Force (FATF) is a leading actor in drafting guidelines and regulations to combat criminal activity within financial systems. Its recommendations have driven global legislation concerning money laundering prevention, particularly regarding virtual assets, which represent value that can be traded or transferred digitally. New technologies, including blockchain technology, have the potential to make anti-money laundering measures faster, less expensive, and more efficient. However, this growth also creates regulatory demands, making it challenging for businesses to harness these technologies while meeting regulatory requirements. PwC Germany has developed a platform called BETA, which supports crypto asset service providers in complying with FATF-inspired flags and reducing financial crime risks. The platform uses Neo4j graph database technology to analyze transactions, link local data to on-chain data, and provide automated real-time scoring. By leveraging Neo4j's capabilities, PwC Germany can navigate the complexity of this field and offer a technological and analytical foundation for anti-money laundering transaction monitoring and risk-based flow of funds analytics for crypto assets.