With the development of the crypto industry and the growth of the number of people dealing with crypto transactions, the question of crypto security has become acute. In this article, we will explain the importance of AML checks and offer some worthy tools that help crypto businesses comply with regulations.
What is AML in Crypto?
AML techniques refer to the strategies, processes, and methods employed by financial institutions, businesses, and regulatory authorities to detect, prevent, and reduce the risks of money laundering and other financial crimes. Here are some common AML techniques:
- Customer Due Diligence (CDD) – verifying and understanding the identity of customers before establishing a business relationship.
- Transaction monitoring and analyzing in real-time to identify unusual patterns, large transactions, or activities that deviate from the customer’s normal behavior. For example, a USDT AML check helps detect large USDT transactions, unusual to a specific wallet.
- Watchlist screening – comparing customer information against government-sanctioned lists, such as terrorist watchlists or politically exposed persons (PEP) lists.
- Suspicious activity reporting (SAR) – reporting any detected or suspected unusual activities to regulatory authorities for further investigation.
AML Crypto Tools
Take a look at AML tool comparison in the table below:
| Software | Brief Overview | Main Features | Effectiveness |
| Chainalysis | Blockchain analytics platform trusted by the world’s biggest financial institutions | Transaction monitoring for suspicious activities Address clustering to track fund flows Detecting and investigating scams, hacks, and fraud actions with crypto assets Real-time risk scoring | Effective in tracing crypto transactions and providing insights for law enforcement and compliance authorities |
| Elliptic | Blockchain analytics and AML solutions to financial institutions and crypto businesses | Risk assessment tools for compliance Identification of wallet ownership and transaction history Monitoring services for 500+ crypto assets | Accuracy in identifying high-risk transactions and entities, helping businesses adhere to regulatory standards |
| CipherTrace | The leader in crypto financial intelligence and AML, powering blockchain analytics and compliance solutions to battle crypto crime around the world | Monitoring illicit fund flows Compliance tools for exchanges, funds, and VASPs Support for a wide range of cryptocurrencies | Used by financial institutions and regulators to grow AML capabilities and investigate crypto-related crimes |
| ComplyAdvantage | AML and risk detection solutions for various industries, including cryptocurrency | AI-driven solutions ensure that crypto companies meet regulatory expectations across different jurisdictions Enhanced due diligence tools Global watchlist checks | Advanced risk detection, helping businesses stay ahead of emerging threats |
Picking among the best AML crypto tools, pay attention to how easily they fit with your existing systems and your team. Make sure the AML tools can grow with your business, use smart technology to analyze big data arrays and integrate with global watchlists. This way, you’ll have a tool that not only stops financial crimes but also keeps up with changing regulations.
