The Facebook Diem Network has partnered with the K2 Integrity compliance and monitoring firm to combat illicit financial activity on its network.
Compliance, monitoring, and risk assessment firm K2 Integrity has announced a partnership with the Facebook Diem association, according to a press release issued on Aug 11. The former will work with Diem Networks US to “support initially, lead, and continue to build innovative solutions” for the Financial Intelligence Function (FIF).
The FIF is a system that combats illicit financial activity on the Diem Payment network. It involves close participation from Diem’s members, who work together to adhere to financial crime compliance controls. The press release emphasizes that Diem is keen on meeting compliance standards, a problem that is plaguing the market at the moment.
Stuart Levey, Chief Executive Officer of Diem Networks US, called the compliance standards a top priority, and expects a lot from the collaboration, saying,
“Designing a framework that sets high financial crime compliance standards has been one of the Diem project’s top priorities, and this is an area where we are continuing to innovate. We are excited by this opportunity to partner with K2 Integrity, a team that has a wealth of experience in this space and is respected internationally for their leadership on anti-money laundering and counter-terrorist financing (AML/CFT) issues.”
Diem Networks US is a unit of the Diem Association, Facebook’s heavily discussed stablecoin project. Since last year, the company has been quiet since it aggrieved regulators for its potential to disrupt the national sovereignty of currencies. Facebook has since changed tack and redesigned the system to be more agreeable to governments.
Facebook Diem progress
Facebook has been plodding along with its stablecoin project, even if updates have been limited. It has made it a point to comply with regulation since its initial bombshell reveal.
The stablecoin project comes at a time when regulators the world over are closely examining stablecoins. The general fear is that they may take some of the roles of national currencies. As such, both international bodies and specific governments are drawing up frameworks to tackle the niche.
The U.S., in particular, seems highly focused on the stablecoin market, with U.S. Treasury Secretary Janet Yellen speaking about it. The Federal Reserve Chairman believes that a dollar-based CBDC could reduce the need for stablecoins, hinting at an imminent CBDC announcement.