Anti-money laundering: Sandbar raises $4.8 million

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The service is primarily intended for FinTechs and requires some code knowledge to be installed.

Anti-money laundering: Sandbar raises $4.8 million

While the various cryptocurrency exchange platforms are increasingly spied on by the SEC (Securities and Exchange Commission) and European legislators, here is a tool that wants them good is gaining ground. Sandbar, whose head office is based in New York and which already has around ten employees, has just raised no less than $4.8 million, notably from private funds Lachy Groom ( Beacon AI, Nana Academy, Stark Bank) and Abstract Ventures (Notebook Labs, Seconf Front Systems, Odyssey Energy Solutions).

The principle of the app is simple. While criminals can now easily perform traditional KYC procedures, Sandbar, connected for example to a bank account, can detect suspicious movement patterns . If fraud or suspicion of money laundering is identified, the operator can then take the necessary measures and avoid ending up in illegality as well. Beyond simple transactions, the developers of the solution explain that they also analyze metadata to verify the integrity of users.

Support to the highest echelons of Tech

Sandbar has other strengths. The firm has been able to attract additional investors of choice, in particular from Credit Karma (Intuit), Google, Ramp, Figma, Revolut, Stripe, Square, Remitly and even OpenAI. So with serious names in finance on board, it can be assumed that the founders will be advised as best as possible for their future development.

Brock Bontrager, CEO of the company, says for his part want to bet part of the fundraising on reducing the number of false positives. There would also be talk of making Sandbar's recognition algorithm more efficient. Abe Goldstein, the CTO, previously worked at Netflix and the Federal Reserve Bank of Chicago.

Looking for opaque funding

Beyond simple money laundering, Sandbar's software also knows how to identify illicitly obtained funds. Today, with online banks, anyone can obtain an IBAN with a simple identity card validated in the background by a human eye or an Onfido type scanner. But these methods are not always the most reliable: a fake CNI costs a few hundred euros on the darknet, sometimes with very competent forgers. Some would even officiate directly within the establishments of the state where the documents are printed. A gold mine for drug trafficking.

With this, one can easily imagine that suspicious shareholders can be warned when a young company does not fulfill not its obligations. Remember: Not so long ago, Oi2Go was bypassing audit firm checks to steal $1.3 million from uncaring investors.

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