The term “anti-money laundering” or AML refers to the set of procedures and legal rules that are applied to detect and prevent the proceeds of illegal activities. It refers to activities such as trafficking in illicit goods, tax evasion, market manipulation, and laundering of illegally obtained funds.
To prevent the global spread of criminal activity, regulators are forcing financial institutions to conduct due diligence on their customers and flag and report suspicious customers and transactions.
As the crypto industry evolves, it is clear that virtual currencies are spawning a new wave of financial crime. After all, attackers can use innovative technology to launder money. This is especially evident in gambling sites and crypto-mixer platforms.
Crystal Blockchain affiliate program analysts estimate that the value of digital coins stolen by hackers has exceeded $12 billion in the history of the crypto industry since 2011. This confirms the need for more effective preventive methods to combat financial crime in the crypto sector.
A first step in this direction is the development of methods to combat money laundering through the crypto market. Their set includes AML transaction verification, address verification and other mandatory procedures.
Everyone knows that cryptocurrency is constantly on the blockchain and all transactions can be tracked. Some projects have already started marking coins stored on their addresses with special digital tags.
If the funds are stolen, the information about it will get to the websites of legal cryptocurrency exchanges and they will be forced to block the funds together with the user’s account. You will lose your money and you will also be caught by law enforcement agencies.
WHERE DOES DIRTY BITCOIN COME FROM?
BTC digital coins are generated through the process of mining, so they are all initially completely clean. Even if a mining farm is controlled by drug traffickers or terrorists, the mining process is not affected in any way.
But then this money can become dirty. This happens most often when bitcoin or other crypto is used in various scams and criminal schemes. For example, to purchase drugs and other illicit goods. Also, in black-money laundering or cracking deposits of crypto-exchanges, deficit pools and other blockchain platforms.
Existing AML verification services consider 3 (high risk, medium risk, low risk) or 5 (extremely high risk, high risk, medium risk, minimal risk, no risk) groups of sources as risk assessment.
1. High risks: mixers, scam projects, darknet and everything related to breaking the law of all states.
2. Medium risks: if the cryptocurrency is obtained from exchanges without regulation and verification, as well as through crypto machines.
3. Low risks: mining, p2p exchanges with verification, withdrawal of crypto from reliable payment systems and wallets.
It is the latter group that is the desired “norm” for everyone, including as a result of AML verification services. You know what we’re talking about, right?
It turns out that in the process of generating a new blockchain, information about transfers between drug dealers, arms dealers and other criminals can be added to it. So, AML transaction verification, wallet verification, and blockchain measures are also needed. No one did this at first, but last year technology emerged to reject dirty transactions when forming a new Bitcoin blockchain.
AML verification of transactions during the mining process was pioneered by digital currency miner Marathon. Programs that detect dirty cryptocurrencies are used by all reputable exchanges and companies in the blockchain industry. There are also standalone projects that perform AML checks on bitcoins and other cryptocurrencies.
WHAT IS CRYPTOCURRENCY MONEY LAUNDERING?
Money laundering is the process of making illegally obtained funds legal. Dirty money is put into a legitimate financial scheme to disguise its origin. They end up in various organizations, banks, insurance companies, real estate and investment brokerages.
Money launderers may deposit small amounts of black money or take money out of the country. All this is done to launder dirty money and turn it into a perfectly legal source of income.
After that, it is often sent back to the black market. This seriously hampers the fight against crime and fills the pockets of dirty businessmen.
AML VERIFICATION SERVICES FOR CHECKING CRYPTOCURRENCIES AND TRANSACTIONS
All bitcoin transactions are public, but without the help of special AML services it is impossible to check for free, i.e. by your own efforts by studying the web-browser of blocks. You cannot identify the owner of each address through which your money has passed.
In addition, criminals usually use dozens or hundreds of dummy wallets to cover their tracks, so you need significant computing power and special algorithms to track them.
But, blockchain analysis software is a rapidly growing industry. Here is a list of resources where AML verification of bitcoins is possible. It’s not free, but the prices are quite reasonable.
AMLBOT: AML VERIFICATION SERVICE
The first in our list is AMLBot. Simple, convenient and easy to understand AML verification service.
Checking on this service takes only half a minute, but first you need to create an account and select a rate. AML verification of the purse in messenger is possible.
It supports Bitcoin, ETH, ERC-20 tokens, Ethereum Classic, XRP and other cryptocurrencies (16 coins).
AMLBot checks the specified wallet address for connections to known entities in the blockchain, and aggregates such entities into groups with different levels of risk of illegal activity. The service tracks the connections between these groups and the verified address.
After registering, you get 2 free verifications: there is a web version and a bot in Telegram.
AML verification service checks purses and transactions on more than 20 parameters to assess risk.
You can request a detailed report with specific services: use the search mode to investigate. In contrast to the basic verification mode, the investigation allows you to see specific services and transfer amounts. Indirect links of the target address are displayed separately, the nearest named clusters are also displayed.
As the tariff goes up, the cost of inspection goes down.
GETBLOCK: AML VERIFICATION SERVICE
AML verification service Getblock supports 8 cryptocurrencies: Bitcoin, Ethereum, Litecoin, Dogecoin, Bitcoin Cash, Dash, Zcash, Tron.
The lowest cost of verification at the minimum rate.
Web version and Telegram bot available.
Getblock allows you to check any confirmed transaction, or check the wallet in advance and find out how much “clean” and “dirty” money it contains.
Track favorite wallets and check transactions in one click.
Users add wallets to their favorites and track all new transactions on them in their personal account. And if necessary, checks these transactions in one click.
The user receives one free AML check during registration.
AMLNODE: AML VERIFICATION SERVICE
This AML verification service works through an API. The cost of AML bitcoin checking depends on the amount of transaction. AMLNode is best suited for entrepreneurs.
You can become a merchant and check all incoming transactions in a full-fledged online account. Supports bitcoin, ether, BNB and other cryptocurrencies.
AMLNode can be used by merchants as a payment service, accepting cryptocurrency for selling goods and services.
Helpdesk helps with API configuration.
Supports all major cryptocurrencies and stablecoins: 25 coins in total.
The number of verifiable coins depends on the selected tariff.
They do not charge by volume, but by number of transactions.
ETHERSCAN: AML VERIFICATION SERVICE
Etherscan is a blockchain browser for the Ethereum network. The website allows you to search transactions, blocks, wallet addresses, smart contracts and other data on the network. It is one of the most popular Ethereum blockchain observers and is free to use.
AML verification service Etherscan works exclusively for the “native” cryptocurrency Ethereum.
To use Etherscan, you will need a wallet address, transaction ID (TXID), contract address, or other identifier to put into the search box. The information you see will depend on what you are viewing, but most of it will include related transactions, addresses, timestamps, and amounts.
You can also interact directly with smart contracts to make transactions, check gas fees, and search for airdrops through Etherscan.