Purpose

Translate FATF virtual asset red-flag indicators into transaction monitoring and alert escalation requirements.

Normative

Bitkaya shall maintain risk-based virtual asset transaction monitoring that considers FATF red-flag indicators, including anonymity-enhancing features, high-risk geographies, unusual transaction patterns, unusual size or frequency, sender or recipient profile concerns and source-of-funds or source-of-wealth concerns.

Descriptive

This requirement supports transaction monitoring design and calibration. It should inform blockchain analytics rules, manual review prompts, alert severity, false-positive handling and suspicious activity escalation.

Source reference: SRC-FATF-001 FATF Virtual Assets and VASP Standards.

Assurance Assertions

  • Monitoring rules or review criteria incorporate FATF red-flag themes.
  • Alerts receive documented disposition and escalation where appropriate.
  • Typologies and scenarios are reviewed when FATF updates or emerging risks change.

Relationships

Assurance

  • Source verified: yes
  • Implementation linked: parent-framework only
  • Wording unambiguous: review
  • Detailed operating procedure linked: pending future detailed manuals where applicable

History

  • 2026-07-25: Created from consolidated FATF VA/VASP source object.