Risk management facilitates business expansion and sustainable growth.
“This partnership not only strengthens our cross-border transfer systems, but also reinforces our risk and compliance management, thus facilitating the expansion of our business and ensuring sustainable growth. We are convinced that this alliance will enable us to continue offering efficient solutions tailored to the regulatory requirements of our clients around the world”.
Carlos Mendía
Head of Legal
The company
Koywe brings efficient and customized solutions in the field of digital asset trading. The company seeks to democratize financial access through cryptocurrencies. By providing services that operate beyond traditional marketplaces, offers the resources to simplify and secure cryptocurrency transactions. It facilitates borderless payments and collections by supplying a global solution that operates in 5 countries. Koywe’s cross-border transfer systems use blockchain and are faster, more cost-effective and more secure than traditional methods.
The challenge
Koywe was looking to establish itself operationally in Chile, for which it had to comply with the new Fintech regulation and banking requirements, in order to develop essential commercial bonds for its business.
The new “Fintech Law” (Law N°21.521) establishes compliance with the standards set by the Financial Market Commission (CMF) regarding:
- Risk management policies and procedures
- Organization and internal control
- Information security
- Business continuity and outsourcing of service
Following the changes introduced by the new Fintech regulation, banks are compelled to expand the scope of certain requirements. Therefore, companies like Koywe must now ensure the verification of their customers’
identity through an onboarding (KYC) process as a requirement for opening bank accounts.
After the challenge in Chile, Koywe intended to launch its operations in Argentina and needed to comply with Argentine regulations in order to start operating, open bank accounts and onboard new customers.
The solution
Koywe chose Chaindots as its Risk & Compliance Partner to build and implement the necessary risk control schemes.
From Chaindots we identified the requirements and built the Programs and Policies to ensure compliance with the obligations imposed by both the new Fintech regulation and CMF requirements, as well as by the banking institutions.
Anti-Money Laundering and Terrorist Financing Prevention Program
- Anti-Money Laundering and Terrorist Financing
- Prevention Manual
- Client Onboarding Policy and Processes
- Monitoring Manual
- Client Risk Matrix
Compliance Program
- Crime Prevention Manual (CPM)
- Procurement Policy
- Petty Cash Policy
- Conflict of Interest Policy
- Indebtedness Policy
- Investment Policy
- CPM Risk Matrix
- CPM Training (Law 20.393)
The impact
Thanks to the Programs developed, the company was able to comply with banking regulations and requirements and made progress in opening bank accounts, which allowed it to start operations and expand its business.
Following this project, Koywe decided to extend its relationship with Chaindots through a Risk Management Membership. This membership includes the review and update of risk programs and policies in the face of regulatory changes and updates, to streamline processes. In addition, we helped Koywe in their expansion to Argentina working their programs in line with the country’s regulatory requirements.
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Fintech
A successful collaboration for overcoming regulatory challenges in the fintech sector
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