💼 AML (Anti-Money Laundering) cryptocurrency checks are a system of measures aimed at preventing the use of financial instruments for money laundering and terrorist financing. In the context of digital assets, AML policies are used to detect and prevent illegal financial transactions in the digital sector.
🤔 How does it work, and what are the key features of AML checks?
🔒 The process involves several stages, among which the following can be highlighted:
1)KYC (Know Your Customer).
Users need to provide personal information and documents to confirm their identity. Passport data, identity cards, or other identification documents are most commonly used. KYC, as part of AML checks, helps establish the authenticity of the client, verify their identity and address, allowing financial organizations to work with reliable and legitimate clients.
2)Transaction Monitoring.
AML checks involve a set of systems that continuously monitor transactions to identify suspicious behavior patterns or transfers that may be associated with illegal activities.
3) Risk Assessment.
AML involves assessing the potential risk of using financial resources for illegal purposes based on analytical data.
4) Legal Compliance.
If you need cryptocurrency, the exchange also uses the presented approach to determine compliance with international legislative requirements related to combating terrorism financing.
❓ In which cases may AML checks be required when dealing with cryptocurrency?
📈 Some AML policy rules already start functioning at the initial stages of interaction with cryptocurrency exchanges. Afterward, you may encounter the procedure in the following cases:
Conducting large transactions. When making significant transactions in buying or selling digital coins on exchanges, additional cryptocurrency checks may be required to comply with AML standards. Working with cryptocurrency wallets. When using online wallets for storing or transferring cryptocurrencies, a check of the origin of digital assets and identity may be required to enhance security and comply with AML requirements.ICOs and Crowdsales. Participating in Initial Coin Offerings (ICOs) or crowdsales of projects may require KYC and AML checks to guarantee the safety of investors.
🌐 AML policies in the cryptocurrency field help prevent financial crimes, money laundering, and terrorism financing, ensuring the safety of all users on leading cryptocurrency exchanges such as WhiteBIT, Binance, and KuCoin.
💻 By the way, one of the most popular companies engaged in auditing the security of Web3 projects is Hacken, which holds a key position in the market and timely conducts security audits. Their project list includes well-known names like NEAR, KuCoin, and 1inch.