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Crypto due diligence
Forensic Investigations, Corporate Intelligence & Litigation Support
Crypto due diligence: tracing value, decoding risk
Cryptoassets are increasingly present across private banking, wealth management and client onboarding. With the entry into force of MiCA, the EU Transfer of Funds Regulation (TFR) and expanding expectations under FATF and 5AMLD, financial institutions must demonstrate that crypto exposure, whether direct or indirect, has been properly identified, assessed, documented and addressed.
Crypto due diligence is no longer an optional add-on: it is the structured process of verifying, analysing and contextualising a client or counterparty’s exposure to cryptoassets to detect risks related to financial crime, regulatory breaches, or reputational harm. It requires a risk-based, intelligence-led approach that goes far beyond surface-level checks and supports sound client onboarding, credible SoF/SoW analysis, and defensible compliance decisions.
Why crypto due diligence matters for private banks, relationship managers and compliance teams
Integrating crypto into mainstream finance creates new blind spots that standard KYC/KYB processes cannot adequately address.
It helps answer fundamental questions, such as:
- Who is behind the wallets, exchanges or entities interacting with the bank?
- Are there hidden risks such as mixers, privacy coins, or transactions routed through high-risk jurisdictions?
- Could pseudonymity, DeFi activity or crypto-funded transfers create exposure to AML/CFT, sanctions or Travel Rule breaches?
- Are the client’s Source of Funds/Source of Wealth plausible and verifiable when validated against on-chain evidence?
- Are there typologies, such as wash trading, self-laundering, darknet exposure, that may impact onboarding, monitoring or risk appetite?
Early detection enables you to maintain compliant onboarding procedures, reinforce AML/CFT controls, and prevent exposure to regulatory findings, de-banking situations, or reputational damage.
A mindset that supports confident,
well-documented decisions
Effective crypto due diligence requires technology-aware assessment, combining on-chain analytics with legal, regulatory and investigative expertise.
This structured approach helps institutions:
- Understand direct and indirect crypto exposure
- Identify red flags early and define appropriate mitigation measures
- Reinforce SoF/SoW verification with evidence-based analysis
- Ensure Travel Rule compliance and traceability of counterparties
- Strengthen documentation to withstand supervisory scrutiny
Ultimately, it allows private banks, onboarding teams and compliance officers to act with clarity, confidence and defensible risk management.
Download our crypto due diligence service offering
A comprehensive overview of our crypto risk assessment methodology, the six pillars of analysis, use cases and examples of investigations.
