KPMG Partners Chainalysis to Fight Crypto-Related Crimes in Canada

Top accounting firm KPMG through its Canadian arm has partnered with on-chain analysis firm Chainalysis to help organizations combat crypto-related fraud in the country.

According to a statement, KPMG will be working with Chainalysis’ “Solution Provider” program, offering “rigorous monitoring, support, governance and risk management to crypto exchanges, financial institutions, law enforcement and government agencies.”

As part of the collaboration, KPMG professionals will become “Chainalysis Certified Investigators” to help them assist clients in detecting and preventing illicit crypto-based activity, adhere to evolving crypto regulations and enhance existing anti-money laundering compliance.

Commenting on the partnership, forensic leader at KPMG in Canada, Enzo Carlucci, said “Crypto asset exchanges, crypto-native companies, financial institutions, government and law enforcement agencies are increasingly looking for innovative ways to help them ‘follow the crypto’ to investigate criminal activity,” 

“By teaming up with Chainalysis, KPMG clients can benefit from Chainalysis’ proprietary blockchain data monitoring technology, resulting in improved identification of potentially criminal activities and faster response times,” he added. 

Crypto frauds have seen a sudden surge in Canada this year, even though the country isn’t the most friendly towards crypto. Canadians were reportedly scammed of over $160 million in the first quarter of 2023 alone. 

The Ontario Securities Commission Contact Centre also reported a 200% increase in crypto-related complaints since 2020. The police have also received 340 reports of cryptocurrency-related scams so far this year in Calgary alone, with losses topping $22 million. 

Most of the crypto frauds came as big investment opportunities that victims rushed into and lost their funds. This calls for urgent actions, hence the partnership with KPMG.

Leveraging KPMG’s Professionalism

KPMG is a business forensic company whose goal is to help clients achieve the highest level of business integrity through the prevention, detection, and investigation of fraud and misconduct. 

Its skilled forensic experts are versed in cross-border and sector-specific knowledge, conduct precise investigations, analyzing intricate financial data to detect crimes and prevent them. Chainalysis says its clients will be leveraging the company’s professional forensics to help them prevent future frauds.

“By teaming up with one of Canada’s largest professional services firms, our clients can leverage the expertise of KPMG’s trusted forensics and crypto asset advisory professionals to establish effective know your transaction (KYT) rules, stronger anti-money laundering protocols and robust investigation strategies,” Chainalysis co-founder and Chief Strategy Officer Jonathan Levin added.

Global Rise in Crypto Crypto Crimes

Canada isn’t the only country facing the menace of the rising number of crypto crimes. All over the world as crypto adoption continues to grow, crypto fraudsters have also increased in number and effectiveness of their operations to better steal from unsuspecting victims.

According to a crypto crime report by Chainalysis, global illicit crypto transaction volume reached record levels last year, hitting $20.6 billion. This number is likely to increase in the coming months as the crypto industry goes into a bull market between 2024 and 2025 based on expert predictions.

The crime rate has also increased during bull markets historically. This coincides with the time when new investors enter the crypto industry with little or no experience, most of which are usually taken advantage of by fraudsters.

This calls for caution on the part of crypto investors who should be more mindful of the kind of investments they get into.

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