Wallet Address AML Screening

Considering the growing engagement of bad actors in the crypto economy, screening wallet addresses for risk exposure has become crucial to ensure a coherent risk-based approach to crypto assets. Targeted wallets are verified to identify which other addresses they interacted with until that specific screening moment, checking both inbound and outbound transactions. Such measures allow the association of wallets to entities, individuals, and other anonymous or pseudonymous addresses linked to risk parameters such as mentions in adverse media reports regarding criminal activity in general, financial crime, cryptocurrency theft, and sanctions lists, among others. Additionally, screening allows the tracing of movements of funds, revealing itself not only as an important tool for compliance but also for law enforcement investigations.

Wallet screening allows for the proper setting of the risk profile of an address, enabling companies to confidently decide on accepting or rejecting engaging with addresses based on their predetermined risk tolerance thresholds.

Ongoing wallet transaction monitoring allows for the regular update of the risk profile of a wallet address, aiding businesses to keep track of profiles that, at the first moment, might have been categorized as low risk, but moving forward new anomalous activities and entities come to surface and completely alter the address’ risk rating and might lead to the termination of the business relationship by the client in order to avoid unsustainable risks.