Cryptocurrency AML Compliance
Meet your anti-money laundering obligations with professional cryptocurrency compliance services. OFAC screening, risk assessment, transaction monitoring, and regulator-ready documentation.
Professional Cryptocurrency AML Compliance Services
Cryptocurrency businesses face an increasingly complex regulatory landscape. From FinCEN's requirements in the United States to the EU's evolving AMLD framework, from Singapore's MAS guidelines to emerging regulations worldwide, anti-money laundering compliance is no longer optional—it's essential for survival. Regulators are issuing record fines, revoking licenses, and even pursuing criminal charges against businesses that fail to implement adequate AML controls for cryptocurrency operations.
At FundTrace, we provide the blockchain intelligence and compliance documentation that cryptocurrency businesses need to meet their regulatory obligations. Our services combine advanced blockchain analytics with deep regulatory expertise, delivering sanctions screening, risk assessment, and transaction monitoring that satisfies the most demanding compliance requirements. Whether you're a cryptocurrency exchange, OTC desk, fund manager, or traditional financial institution adding crypto services, we help you build and maintain a defensible AML program.
Unlike generic compliance software that produces false positives and misses true risks, our expert-driven approach provides accurate, actionable intelligence. We understand both blockchain technology and regulatory expectations, bridging the gap between on-chain activity and compliance documentation that regulators actually want to see.
The Cryptocurrency AML Regulatory Landscape
Global regulators issued record fines against crypto businesses for AML failures, with individual penalties reaching hundreds of millions.
Over 100 countries have now implemented or are implementing cryptocurrency AML regulations aligned with FATF standards.
The Financial Action Task Force (FATF) has established global standards requiring Virtual Asset Service Providers (VASPs) to implement comprehensive AML programs including customer due diligence, transaction monitoring, sanctions screening, and suspicious activity reporting. These requirements are being adopted and enforced aggressively across jurisdictions.
Beyond basic compliance, regulators increasingly expect cryptocurrency businesses to demonstrate sophisticated understanding of blockchain-specific risks. This includes exposure to mixers and tumblers, darknet market interactions, sanctioned entity connections (including OFAC-designated addresses), and emerging threats like ransomware-related funds. Our services help you meet these expectations with evidence-based risk assessment and documentation.
AML Compliance Services
Comprehensive compliance solutions for cryptocurrency businesses
Sanctions Screening
Screen addresses against OFAC SDN, EU consolidated lists, UK sanctions, UN lists, and other major international sanctions databases. Identify direct and indirect interactions with designated entities.
Risk Scoring
Comprehensive risk assessment based on transaction patterns, counterparty exposure, mixer usage, darknet interactions, and historical activity flagged across our proprietary risk database.
Source of Funds Verification
Document fund origins comprehensively to satisfy AML regulatory requirements, KYC processes, and Travel Rule compliance for cryptocurrency transfers.
Transaction Monitoring
Ongoing monitoring of wallet activity for suspicious patterns including structuring, layering, unusual volumes, and interactions with newly flagged addresses.
Suspicious Activity Reports
Comprehensive documentation to support SAR/STR filings with transaction evidence, risk analysis, and pattern identification for regulatory submissions.
Regulatory Reporting
Reports formatted specifically for regulatory submissions across jurisdictions including FinCEN, FCA, MAS, BaFin, AUSTRAC, and other financial regulators.
Travel Rule Compliance
Support for FATF Travel Rule requirements including counterparty identification and transaction information sharing for qualifying transfers.
Enhanced Due Diligence
Deep-dive investigations for high-risk customers, large transactions, or situations requiring additional scrutiny beyond standard KYC.
Who We Help with AML Compliance
Supporting compliance programs across the cryptocurrency ecosystem
Cryptocurrency Exchange Compliance
Support exchange AML/KYC programs with automated wallet screening, customer risk assessment, and suspicious activity detection at scale.
OTC Desk & Trading Firm Compliance
Due diligence for large OTC trades and institutional transactions, ensuring counterparty funds have verifiable clean provenance before execution.
Traditional Financial Institution Compliance
Help banks, brokerages, and other TradFi institutions meet crypto-related AML obligations as they add digital asset services.
Crypto Fund & Asset Manager Compliance
AML documentation and investor screening for crypto hedge funds, venture funds, and investment vehicles with digital asset exposure.
Payment Processor Compliance
Transaction screening and monitoring for payment companies handling cryptocurrency conversions and transfers.
Custody Provider Compliance
Support for cryptocurrency custodians meeting regulatory requirements for asset safekeeping and transfer services.
Real-World AML Compliance Scenarios
How we support compliance teams in critical situations
Exchange Regulatory Examination
A cryptocurrency exchange faced a scheduled examination from their state regulator. We provided comprehensive documentation of their transaction monitoring program, including sample alerts investigated, SAR filings submitted, and sanctions screening results. Our detailed reporting on risk assessment methodology helped demonstrate program adequacy, resulting in a clean examination with no significant findings.
OFAC Sanctions Alert Investigation
An OTC desk received a sanctions alert when a customer's wallet showed indirect exposure to an OFAC-designated address. We conducted enhanced due diligence, tracing the connection path and determining it was a 4-hop indirect connection through a popular DEX—not evidence of intentional sanctions evasion. Our detailed analysis allowed the transaction to proceed with appropriate documentation.
SAR Filing Support
A payment processor identified suspicious patterns in customer transactions suggesting potential structuring. We analyzed the complete transaction history, documented the suspicious patterns with clear visualizations, identified additional related addresses through clustering analysis, and prepared a comprehensive evidence package. The resulting SAR filing was accepted by FinCEN and contributed to a broader law enforcement investigation.
Traditional Bank Crypto Onboarding
A regional bank wanted to offer cryptocurrency custody services but needed to satisfy their primary regulator's concerns about AML risks. We helped design their crypto-specific risk framework, provided integration for transaction screening, and created documentation demonstrating how cryptocurrency risks would be managed within their existing BSA/AML program. The bank received regulatory approval to launch services.
Our AML Compliance Methodology
Effective cryptocurrency AML compliance requires more than checking boxes. Our methodology combines regulatory expertise with advanced blockchain analysis to provide risk assessment that's both technically accurate and defensible to regulators.
Multi-Layer Screening
We screen against multiple data sources: official sanctions lists, proprietary databases of known bad actors, heuristic risk indicators, and behavioral patterns. This multi-layer approach catches risks that single-source screening misses.
Exposure Analysis
We analyze both direct and indirect exposure—understanding that risk extends beyond immediate counterparties. Our analysis traces connections through multiple hops to identify concerning patterns while avoiding false positives from distant connections.
Risk-Based Approach
Not all risks are equal. We apply risk-based methodology aligned with regulatory expectations, focusing resources on highest-risk situations while providing proportionate treatment for lower-risk scenarios.
Audit Trail Documentation
Every analysis includes complete documentation of methodology, data sources, and reasoning. This creates the audit trail regulators expect and provides defensible evidence for compliance decisions.
Our AML Compliance Process
Compliance Assessment
Evaluate your regulatory requirements, risk appetite, and current compliance gaps to define the appropriate scope.
Sanctions & Risk Screening
Screen addresses against comprehensive sanctions lists, risk databases, and known high-risk entity catalogs.
Transaction Analysis
Conduct thorough analysis of transaction history, counterparties, fund flows, and behavioral patterns.
Risk Evaluation
Assess overall risk profile considering all factors and provide clear risk scoring with supporting evidence.
Compliance Reporting
Deliver regulator-ready reports formatted for your jurisdiction with complete audit trails.
AML Compliance Track Record
Our compliance documentation has supported successful regulatory examinations across major jurisdictions including US (FinCEN, state regulators), UK (FCA), EU (various national regulators), Singapore (MAS), and Australia (AUSTRAC). No client using our services has received a significant examination finding related to blockchain analysis quality.
Cryptocurrency AML Compliance FAQ
What sanctions lists do you screen against?
We screen against all major international sanctions lists including: OFAC SDN and Consolidated lists (US), EU Consolidated Sanctions List, UK HM Treasury sanctions, UN Security Council lists, and country-specific lists from Singapore (MAS), Australia (DFAT), Canada (OSFI), and others. We also maintain proprietary databases of addresses associated with darknet markets, ransomware, mixers, and known fraud operations.
Can you help with regulatory examinations and audits?
Absolutely. We provide documentation specifically designed to satisfy regulatory examination requirements for cryptocurrency AML compliance. Our reports meet standards from FinCEN, FCA, MAS, BaFin, AUSTRAC, and other regulators. We can also provide expert support during examinations to explain our methodology and findings.
Do you offer ongoing transaction monitoring?
Yes, we provide ongoing monitoring services that continuously screen wallet activity against sanctions lists, risk databases, and suspicious pattern indicators. You receive immediate alerts when addresses you're monitoring interact with newly flagged entities, show suspicious patterns, or exceed defined risk thresholds.
What jurisdictions and regulatory frameworks do you cover?
Our services cover global regulatory requirements including US (BSA/FinCEN), UK (FCA/MLRs), EU (AMLD), Singapore (MAS), Hong Kong (SFC), Australia (AUSTRAC), Canada (FINTRAC), and many others. We customize reports and risk frameworks for specific jurisdictional requirements and can support multi-jurisdictional compliance programs.
How do you assess wallet and counterparty risk?
Our risk assessment considers multiple factors: direct sanctions exposure, indirect exposure (counterparty of counterparty), mixer/tumbler usage, darknet market interactions, gambling site exposure, high-risk jurisdiction connections, behavioral patterns (structuring, layering), volume anomalies, and connections to previously flagged addresses. Each factor contributes to an overall risk score with detailed supporting evidence.
Can you help with Travel Rule compliance?
Yes, we support FATF Travel Rule compliance by helping identify counterparty VASPs, verify originator/beneficiary information where available through blockchain analysis, and document transactions meeting Travel Rule thresholds. We can integrate with your Travel Rule solution or provide standalone analysis.
What documentation do you provide for SAR filings?
For Suspicious Activity Report filings, we provide comprehensive evidence packages including: complete transaction timelines, fund flow visualizations, risk factor analysis, counterparty identification, pattern analysis documentation, and narrative summaries suitable for regulatory submission. Our reports are designed to give compliance officers and regulators clear evidence supporting the filing.
How quickly can you screen addresses?
For standard screening, results are typically available within hours. We also offer API access for high-volume real-time screening needs, enabling automated KYC checks at customer onboarding or transaction execution. For complex investigations requiring deep analysis, timelines depend on scope.
Do you provide risk ratings that satisfy regulators?
Yes, our risk scoring methodology is designed to meet regulatory expectations for risk-based AML programs. We provide clear, documented risk ratings with supporting evidence that compliance teams can use directly in their programs and present to regulators during examinations.
Can you help build an AML program from scratch?
While our core services focus on transaction analysis and screening, we can provide guidance on program design based on our experience supporting hundreds of crypto businesses. We can recommend thresholds, risk factors to consider, and reporting structures aligned with regulatory expectations in your jurisdiction.
Need Cryptocurrency AML Compliance Support?
Get professional AML compliance services designed for the unique challenges of cryptocurrency. From sanctions screening to regulatory examinations, we help you meet your obligations.
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