Criminals try to make illegal money look legitimate by moving it through:
What AML is
AML is a system of checks and controls designed to:
Stop money laundering
Prevent terrorism financing
Detect fraud and illegal financial activity
Ensure financial transparency
Why AML Exists
- Banks
- Businesses
- Crypto exchanges
- Wallets
- DeFi platforms
AML helps governments and companies detect and block these activities.
AML in Crypto
Because crypto allows fast, global transfers, AML is especially important.
How AML works in crypto:
Identity verification (KYC)
Users verify their identity on exchanges or platforms Prevents anonymous misuse
Transaction monitoring
Blockchain transactions are tracked Suspicious patterns are flagged (large transfers, mixers, darknet links)
Wallet screening
Wallet addresses are checked against blacklists. Prevents interaction with known criminal wallets
Reporting suspicious activity
Exchanges report suspicious transactions to regulators Similar to banks filing SARs (Suspicious Activity Reports).
AML Verification Process
When a client’s funds are held for AML (Anti-Money Laundering) verification, the money is not lost or seized.
It is temporarily paused only to confirm that the transaction is legitimate.
Once the AML verification is successfully completed, the funds are automatically returned to the exact same wallet address they were originally sent from.
This is done to ensure security and prevent fraud.
Timeline
After verification is approved, the funds are released.
The return transaction is processed within 60 minutes.
Key Safety Points
- Funds are never redirected to a different wallet
- Only the original sender’s wallet can receive the return
- The process is transparent and verifiable on the blockchain
Great things in business are never done by one person. They’re done by a team of people.