How Check AML Screening Works
Understanding block trace, entity mapping, and threat score calculations.
1. Inputting Address
The user inputs an address or connects a wallet. The interface extracts public transaction signatures from the blockchain state, cross-referencing global sanctions lists on the OFAC sanctions databases.
2. Tracing Transactions
The trace engine maps the flow of funds across previous transaction hops, evaluating if the address has interacted with flagged addresses, mixers, or illicit pools, utilizing analytical models from Elliptic transaction screening.
3. Risk Scoring
Using behavioral patterns and database updates, the algorithm computes a security risk score. It incorporates threat models developed by compliance groups like TRM Labs risk monitoring.
4. Reporting
The interface presents a security report detailing source entities, mixer exposure, and overall transaction compliance.