Suspicious transaction report (STR)

Financial institutions and VASPs must file suspicious transaction report if a transaction is suspected to be related to a money laundering or terrorism financing offense. AML regulations often include STRs as a requirement for compliance. However, the activity that will trigger the need to file an STR depends from country to country.

STRs must contain information on the suspected individual or entity and on the transaction itself. To gather these data, VASPs can use identity details collected during KYC processes and transaction monitoring tools such as Scorechain's.

When is it suspicious?

Suspicious transaction happens when the operator knows, suspects, or has reasonable grounds to suspect money laundering or terrorist financing.

In general, suspicion can be described as "someone's negative opinions or his/her behaviour based on hints, impressions, instincts, but without specific evidence.”

This means that when reporting a suspicion, no evidence of money laundering or terrorist financing is required. What is needed is a situation that will make such assumptions possible.

Discover more about blockchain crypto and compliance with our Glossary.

About Scorechain

Scorechain is a Risk-AML software provider for cryptocurrencies and digital assets. As a leader in crypto compliance, the Luxembourgish company has helped over 200 customers in 40 countries since 2015, ranging from cryptocurrency businesses to financial institutions with crypto trading, custody branch, digital assets, customers onboarding, audit and law firms, and some LEAs.

Scorechain solution supports Bitcoin analytics with Lightning Network detection, Ethereum analytics with all ERC20 tokens and stablecoins, Litecoin, Bitcoin Cash, Dash, XRP Ledger, Tezos, and Tron with TRC10 and TRC20 tokens. The software can de-anonymize the Blockchain data and connect with sanction lists to provide risk scoring on digital assets, transactions, addresses, and entities. The risk assessment methodology applied by Scorechain has been verified and can be fully customizable to fit all jurisdictions. 300+ risk-AML scenarios are provided to its customers with a wide range of risk indicators so businesses under the scope of the crypto regulation can report suspicious activity to authorities with enhanced due diligence.