AML and KYC for Bitcoin
“Banks and global financial institutions are required by law makers and law enforcement to strictly follow anti money laundering (AML) and know your customer (KYC) policies. To support bitcoin companies and bitcoin-based financial services, banks must record the origin of transactions and the method used to purchase the digital currency.
“Oftentimes fraud alerts will be triggered in other parts of the fraud detection process, and they will be linked to some bad activity on the blockchain, and that will serve as a three-point strike — someone flipped their bank account a number of times, then you see a connection to a dark market and you know that something bad is going on,” Chainalysis co-founder Jonathan Levin told the American Banker.
“It’s not necessarily the only check you’re going to be able to do, but there is some expectation that financial intermediaries should be doing source and destination of funds type analysis,” Levin added.”
http://www.newsbtc.com/2015/12/06/bitcoin-by-default-is-not-anonymous/