The Directive specifies not only all the practices for the prevention of money laundering and terrorist financing that companies in all targeted industries — particularly in the financial and other related industries — must implement but also the penalties that will be imposed if these practices are not followed.‍

C-mount is the most common optics mount in the industrial market. It is defined by a flange focal distance of 17.526 mm, a diameter of 1” (25.4 mm) with 32 threads per inch.

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As money laundering and terrorism financing through crypto are on the rise, crypto companies and financial institutions must set an AML/CTF framework to mitigate the transmission of funds to hackers and terrorist groups. Counter-Terrorism Financing blocks the soliciting, collecting, or providing funds for terrorist acts or groups.

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F-mount is a bayonet-style mount originally developed by Nikon for its 35 mm format cameras and is still found in most of its digital SLR cameras. It is commonly used with bigger sensors, e.g. full-frame or line-scan cameras. Lenses can be easily swapped out thanks to the bayonet mount, but no back focal adjustment is possible.

Criminals are very creative in developing methods to launder money and finance terrorism. Since 2017, criminals have laundered about $33 billion worth of cryptocurrencies, with the majority of that amount flowing to centralized exchanges over time. Comparatively, the UN Office of Drugs and Crime estimates that between $800 billion and $2 trillion in fiat currency is laundered annually, up to 5% of the world’s GDP. In 2021, money laundering accounted for only 0.05 percent of all crypto transactions.

Since fixed focal length lenses also follow the previous equation, it is possible to calculate the required focal length given the magnification and working distance, or the required working distance given the sensor size, field of view and focal length, etc. (some examples are given at the end of this section). For macro and telecentric lenses instead, the working distance and magnification are typically fixed.

This is why a spacer kit is supplied with Opto Engineering® telecentric lenses including instructions on how to tune the back focal length at the optimal value.

An efficient anti-money laundering/counter-terrorism financing framework must prevent, detect, and punish illegal funds entering the financial system and terrorist funding. AML and CTF tactics merge; they attack a criminal or terrorist organization’s financial activities and use the financial trail to identify their components. This requires recording all transactions and detecting suspicious transfers.

The focal length is a typical characteristic of an optical system. It is a measure of how strongly the system converges or diverges rays of light. If collimated rays converge to a physical point, the lens is said to be positive (convex), whereas if rays diverge the focus point is virtual and the lens is said to be negative (concave). All optics used in machine vision applications are overall positive, i.e. they focus incoming light onto the sensor plane. CCTV lenses are commonly identified by their focal length, expressed in millimeters (12mm, 25mm, 35mm, etc.).

A certain number of parameters must be considered when choosing optics, depending on the area that must be imaged (field of view), the thickness of the object or features of interest (depth of field), the lens to object distance (working distance), the intensity of light, the optics type (telecentric/entocentric/pericentric), etc.

Each camera mount is more commonly used with certain camera sensor formats. The most typical sensor formats are listed below. It is important to remember that these are not absolute values – i.e. two cameras listed with the same sensor format may differ substantially from one another in terms of aspect ratio (even if they have the same sensor diagonal). For example, the Sony Pregius IMX250 sensor is listed as 2/3” and has an active area of 8.45 mm x 7.07 mm. The CMOSIS CMV2000 sensor is also listed as 2/3” format but has an active area of 11.26 mm x 5.98 mm.

where p is the sensor pixel size (in microns), M is the lens magnification and k is a dimensionless parameter that depends on the application (reasonable values are 0.008 for measurement applications and 0.015 for defect inspection). For example, taking p = 5.5 µm and k = 0.015, a lens with 0.25X mag and WF/# = 8 has an approximate DoF = 10.5 mm.

Every optical system is characterized by an aperture stop, that determines the amount of light that passes through it. For a given aperture diameter d and focal length f we can calculate the optics F-number:

For common optical systems, in thin lens approximation, the focal length is the distance over which collimated rays coming from infinity converge to a point on the optical axis.

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Stay up to date with essential Travel Rule information such the enforcement status, threshold amount, and self-hosted wallet obligations in each jurisdiction.

The basic purpose of a lens of any kind is to collect the light scattered by an object and recreate an image of the object on a light-sensitive ‘sensor’ (usually CCD or CMOS based).

Macro and telecentric lenses are designed to work at a distance comparable to their focal length (finite conjugates), while fixed focal length lenses are designed to image objects located at a much greater distance than their focal length (infinite conjugates). It is thus convenient to classify the first group by their magnification, which makes it easier to choose the proper lens given the sensor and object size, and the latter by their focal length.

A common F-number value is F/8 since smaller apertures could give rise to diffraction limitations, while lenses with larger apertures are more affected by optical aberrations and distortion. A rough estimate of the field depth of telecentric and macro lenses (or fixed focal length lenses used in macro configuration) is given by the following formula:

The focal length and the focus plane coincide only when the object is placed at an infinite distance, indeed beams from a point on the object can be considered as parallel. When instead the distance from the object is ‘short’ (rule of thumb: <10x Focal length), we are in macro mode and the focus plane is placed further away from the optical system compared to the focal length.

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The main features of most optical systems can be calculated with a few parameters, provided that some approximation is accepted. The paraxial approximation requires that only rays entering the optical system at small angles with respect to the optical axis are taken into account. The thin lens approximation requires the lens thickness to be considerably smaller than the radii of curvature of the lens surfaces: it is thus possible to ignore optical effects due to the real thickness of the lenses and to simplify ray-tracing calculations. Furthermore, assuming that both object and image space are in the same medium (e.g. air), we get the following fundamental equation:

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VASPs are required to take a risk-based approach to customer due diligence. Thus, the due diligence measures required to onboard and maintain a relationship with a customer should vary depending on the case at issue and relevant risk factors. However, AML/CTF regulations usually set a baseline of mandatory KYC measures, such as:

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Each jurisdiction has its KYC, AML, and CTF regulations. However, most frameworks are built considering the FATF standards. Across jurisdictions, there is a common expectation that FIs apply their own risk-based approach to minimize risk.Â

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These steps may need to be complemented with enhanced due diligence measures that help financial institutions estimate each client’s virtual currency money laundering risk.Â

Typical F-numbers are F/1.0, F/1.4, F/2, F/2.8, F/4, F/5.6, F/8, F/11, F/16, F/22, etc. Every increment in the F-number (smaller aperture) reduces incoming light by a factor of 2. The given definition of F-number applies to fixed focal length lenses where the object is located ‘at infinity’ (i.e. a distance much greater than its focal length). For macro and telecentric lenses where objects are at a closer distance, instead, the working F/# (wF/#)is used. This is defined as:

Travel Rule compliance is integral to AML/CTF efforts. FATF’s Travel Rule for Crypto Assets mandates that all VASPs send, receive, and sanction screen customer personal information alongside crypto transactions above a certain amount. During a Travel Rule–compliant transaction, VASPs will exchange pertinent KYC information about the customer and run sanction screening on the counterparty customer identity and blockchain address, which could uncover a sanctioned individual or an address linked to transactions with a high risk score. With this information, VASPs choose to accept or reject the transaction. Essentially, complying with the Travel Rule will ensure traceability of crypto asset transfers and greater capability mitigate money laundering and terrorist financing.

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In recent years, there has been evidence that terrorist organizations are using cryptocurrencies to fundraise and transfer funds, which is a significant obstacle to international anti-terrorism efforts. Because terrorist organizations’ use of crypto is still new, relevant countermeasures and theoretical studies are limited. Crypto exchanges today require a robust Travel Rule solution to perform proper counterparty risk mitigation and be able to identify or block a transaction with a sanctioned individual or entity.Â

For optical systems used in machine vision, in which rays reflected from a faraway object are focused onto the sensor plane, the focal length can be also seen as a measure of how much area is imaged on the sensor (Field of View): the longer the focal length, the smaller the FoV and vice versa (this is not completely true for some particular optical systems, e.g. in astronomy and microscopy).

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According to the Global Terrorism Database, there were nearly 8,500 terrorist attacks in 2019, which resulted in over 20,300 deaths. Terrorism utilizes extreme measures, such as assault, intimidation, and kidnapping, to achieve political or ideological goals.

This article dives into CTF, its requirements for crypto, its relationship to the Travel Rule, and how Notabene can help VASPs and financial institutions set up a robust framework to prevent transacting with high-risk and sanctioned entities.

CTF in crypto includes measures meant to stop criminals from circumventing AML rules via cryptocurrency. This is done by introducing obligations for VASPs to collect and make accessible certain information about senders and beneficiaries of the crypto asset transfers they facilitate, as recommended by FATF’s Recommendation 16, the crypto Travel Rule.Â

Terrorists and terrorist organizations typically require funding to sustain themselves and conduct terrorist acts. Money from various sources gives terrorist organizations the ability to execute terrorist actions. Counter-terrorism financing measures block access to funds that would otherwise be used to fund terrorist acts.

Terrorist financing entails soliciting, collecting, or providing funds for terrorist acts or groups. Financiers of terrorism aim to disguise the financing and the activities being carried out. Similar to money laundering, there are generally three stages in terrorism financing: raising, moving, and using funds. Despite the different stages, how terrorism financing is conducted is similar and, in some cases, may be identical to the methods used to launder funds.

Many cameras are found not to respect the industrial standard for C-mount (17.52 mm), which defines the flange-to-detector distance (flange focal length). Besides all the issues involved with mechanical inaccuracy, many manufacturers don’t take into the due account the thickness of the detector’s protection glass which, no matter how thin, is still part of the actual flange to detector distance.

The F-number affects the optics depth of field (DoF), that is the range between the nearest and farthest location where an object is acceptably in focus. Depth of field is quite a misleading concept because physically there is one and only one plane in object space that is conjugate to the sensor plane. However, being mindful of diffraction, aberration and pixel size, we can define an “acceptable focusing distance” from the image conjugate plane, based on subjective criteria. For example, for a given lens, the acceptable focusing distance for a precision gauging application requiring a very sharp image is smaller than for a coarse visual inspection application.

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Due to their perceived anonymity, cryptocurrencies attracted terrorist organizations and, in recent years, have begun to adopt them to finance their criminal activities. However, even though people can use cryptocurrency as a technology to launder money, the unbreakable link to ownership can help law enforcement catch criminals. The criminal can run away and hide, but with digital assets, the crime scene, which is the record of the transaction, is permanently locked away in the blockchain.Â

CS-mount is a less popular and 5 mm shorter version of the C-mount, with a flange focal distance of 12.526 mm. A CS-mount camera presents various issues when used together with C-mount optics, especially if the latter is designed to work at a precise back focal distance.

 An effective CTF framework seeks to prevent, identify, and punish the flow of unlawful funds into the financial system and the financing of terrorist persons, groups, and/or acts. AML and CTF procedures overlap; they target the criminal or terrorist organization's finances and use the financial trail to identify the network's components. This requires monitoring all financial transactions to uncover potentially suspicious transactions.

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where s (s’ ) is the object (image) position with respect to the lens, customarily designated by a negative (positive) value, and f is the focal length of the optical system (cf. Fig. 1). The distance from the object to the front lens is called working distance, while the distance from the rear lens to the sensor is called back focal distance. Henceforth, we will be presenting some useful concepts and formulas based on this simplified model, unless otherwise stated.

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Different mechanical mounting systems are used to connect a lens to a camera, ensuring both good focus and image stability. The mount is defined by the mechanical depth of the mechanics (flange focal distance), along with its diameter and thread pitch (if present). It’s important that the lens flange focal distance and the camera mount flange distance are exactly the same, or focusing issues may arise. The presence of a threaded mechanism allows some adjustment to the back focal distance if needed. For example, in the Opto Engineering® PCHI series lenses, the back focal adjustment is needed to adjust the focus for a different field of view.

Traditionally, terrorist organizations relied on fiat currency to finance their operations and carry out terrorist acts. As a result, the Financial Action Task Force (FATF), the International Monetary Fund, the United Nations, the World Bank, and other international organizations have helped nation states strengthen their financial construction and carry out anti-terrorism work through regulation and oversight, contributing to the stable development of the world economy and society.

Note the EU's sixth AML directive. Formally known as the European Union Directive 2018/1673, the sixth AML directive defines AML/CTF criteria for all EU countries and can be considered an international reference for regulating AML/CTF practices. The Directive sets the policies and penalties for preventing money laundering and terrorist funding that enterprises in all targeted industries — particularly in the financial and other related sectors — must implement.Â

Mxx-mounts are different types of camera mounts defined by their diameter (e.g. M72, M42), thread pitch (e.g. 1 mm, 0.75 mm) and flange focal distance. They are a common alternative to the F-mount for larger sensors.