Crypto Wallet Screening for AML Compliance

Define where wallet screening fits in your AML program

Document which products, assets, networks, customers, and transaction types require wallet screening. The procedure should identify who performs the check, when it occurs, which provider or data source is used, and who can approve an elevated result.

Screen before the decision point

For transactions where wallet risk matters, the check should occur early enough for the business to investigate a result before funds are irreversibly transferred. A screening control that reports risk only after the transaction may be useful for monitoring but cannot serve the same preventive purpose.

Understand the underlying indicators

A high-risk classification can arise for different reasons. Sanctions exposure, stolen funds, scams, mixers, illicit services, or other categories may require different analysis. Review the provider's underlying indicators, exposure type, and available transaction context rather than treating every elevated result identically.

Combine blockchain data with customer context

Wallet screening should complement customer due diligence. Consider the identity of the customer or counterparty, expected activity, transaction purpose, geography, amount, source of funds where appropriate, and whether the blockchain activity is consistent with what the business knows about the relationship.

Create an escalation framework

Written procedures should define what happens when risk is elevated or uncertain.

• Who performs secondary review
• What additional customer information may be requested
• When a transaction is paused or declined
• When sanctions or suspicious-activity escalation should be considered
• Who documents and approves the final disposition

Retain a defensible record

Save enough evidence to reconstruct the decision later: wallet and network, screening timestamp, provider result, relevant indicators, investigation notes, reviewer, disposition, and supporting documents. Consistent records help demonstrate that the control operates in practice.

Using PeakAML

PeakAML's wallet-screening workflow supports selected networks and helps organize screening evidence and review results. Organizations remain responsible for defining the scope, thresholds, escalation rules, and legal requirements applicable to their activities.