AML services for checking cryptocurrency for “purity”. Part 1
“Dirty” can be not only fiat money, but also cryptocurrency. The analysis is carried out using a special algorithm. This program checks transactions for connection with dubious platforms and services.
AML services. What is it
AML verification of funds (literally Anti-Money Laundering – counteracting money laundering) is the identification of cases of money laundering fraudulently received. This includes preventing the financing of terrorism, as well as the detection of other illegal ways of circulating money.
However, dirty coins can also end up in the portfolio of law-respecting users who have never participated in fraudulent transactions. To hide the traces of the crime, scammers use various anonymous wallets and mixers. Thus, dirty coins can get into the wallets of honest users.
Many exchanges and cryptocurrency wallets use AML verification. If dirty coins end up in the wallet, then the account will be blocked for further clarification. The user will need to provide information about the source of the asset. However, in some jurisdictions, the owner of dirty coins can be fined even for unwitting participation in money laundering.
It is impossible to protect yourself from this, but you can take the necessary security measures.
How to protect yourself
Buying cryptocurrencies on trusted secure platforms reduces the risk of getting dirty coins. In the search for new services, trial transactions with small amounts also minimize risk. User reviews on the Internet will also help in choosing safe sites.
In addition, before the transaction, you can check the sender’s wallet address. If, after verification, the wallet receives the status of high risk, then the transaction can be abandoned and protect yourself from risks.
You can also secure your wallet like the sender’s wallet. Before the transaction, you need to check the address of your wallet through the service. Next, you need to save the result, for example, as a PDF file or take a screenshot.
As a result, if the account is blocked, the user will be able to provide data and confirm the purity of their assets. It is also recommended to leave confirmation of the purchase of the coin in an honest way, for example, by taking screenshots.
Having two wallets will help protect assets from dirty coins. One wallet is used for verified clean coins, the other for cryptocurrencies from dubious sources.
So, there is a danger for users to receive dirty coins on their wallet without even knowing it. Through special AML services, users can check questionable coins and then send them to a clean wallet