Broadside Botnet: Main Threats

AML Screening: Essence, Key Specifics, and Practical Guide

Why It Matters (Briefly)

AML screening helps identify suspicious addresses and transactions, preventing account freezes, interactions with sanctioned addresses, and both reputational and financial risks. It is not a replacement for a compliance policy but rather a technical tool — for any organization, it is crucial to combine screening with KYC, internal procedures, and regulatory monitoring.

Who and What to Check

• Before transferring funds — counterparty addresses.
• When receiving deposits — incoming transactions to identify suspicious sources.
• Continuously — corporate wallets and counterparties via automated monitoring.
• When working with new counterparties and jurisdictions — Enhanced Due Diligence (EDD).

Specific Services and Tools

(Briefly by purpose — choose based on supported chains, API, and budget)

• Chainalysis — a widely used analytical suite offering real-time and historical analysis, popular among exchanges and law enforcement.
• Elliptic — transaction analytics and sanctions screening, well-suited for financial institutions.
• TRM Labs — monitoring, risk scoring, and integrations for VASPs.
• Crystal Blockchain (Bitfury) — investigations and flow-of-funds visualization.
• CipherTrace (Mastercard) — tools for AML and sanctions control.
• Coinfirm — a compliance platform with reporting and risk metrics.
• Merkle Science — real-time monitoring and alerts.
• Scorechain — analytics for regulatory compliance.

Free/Additional Resources (For Quick Checks)

• Etherscan/Blockchain explorers — address labels and transaction histories.
• BitcoinAbuse — a database of reported thefts and scams.
• WalletExplorer, Blockchair — clustering and identifying connections.
• Public sanctions lists (OFAC, EU, UN) — verifying clients and addresses.

How to Choose a Provider (Criteria)

• Support for required blockchains and tokens.
• Access formats: API for automation, web interface for manual checks, and batch uploading.
• Accuracy and risk explainability (to avoid wasting time on unnecessary investigations).
• Compatibility with your infrastructure (KYC/CRM/accounting systems).
• Cost and SLA, as well as regulatory requirements in your jurisdiction.

Practical Step-by-Step Implementation Guide (Checklist)

1. Define risk levels and rules (who requires a "stop" check, threshold amounts, restricted jurisdictions).
2. Conduct a pilot with 1–2 providers — evaluate label accuracy and ease of integration.
3. Integrate screening: before transfers (pre-send check), upon receipt of funds, and during post-monitoring.
4. Set up automated rules and alerts (triggers for manual investigation).
5. Implement a case management system and response protocols.
6. Segment wallets: use separate wallets for large or high-risk operations.
7. Update rules as legislation changes and based on incident post-mortems.
8. Train employees and conduct regular audits of screening effectiveness.

Brief Recommendations for Small Businesses and Users

• Before a large transfer, check the address through a screener (or Etherscan/Blockchair + public databases).
• For crypto services: automate at least basic monitoring and KYC; as volume grows, connect a professional provider.
• Keep logs of checks and decisions (essential for disputes with exchanges or regulators).

Conclusion

AML screening is not just a formality; it is a practical security tool that saves time and money when configured correctly. For maximum efficiency, combine a provider’s automated monitoring with internal KYC procedures and response protocols. Choose a specific service based on supported networks, API capabilities, and signal accuracy. If needed, I can help you select 2–3 providers for a pilot tailored to your needs (please specify chains, volumes, and budget).