AML screening in crypto: what US exchanges check
AML screening is how US crypto exchanges check customers and transactions for money laundering, while FinCEN enforces the Bank Secrecy Act rules.
Vahe HakobyanEditor-in-chief
Updated Oct 6, 20262 min readFact-checked
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The checks sit with the exchange, not on the blockchain. The platform is the gatekeeper when you open an account.
What is AML screening in crypto?
AML screening is how US crypto exchanges check customers and transactions for money laundering. It starts with identity checks and continues as the exchange watches activity for illicit funds.
Which crypto activities are screened?
US exchanges must verify your identity and address under Know Your Customer rules and may ask for source-of-funds documents when risk is higher. Screening covers buys, sells, swaps, and transfers at the exchange, not sends between personal wallets.
Who enforces crypto AML rules?
FinCEN enforces the Bank Secrecy Act, the main US anti-money laundering law for many crypto businesses. US exchanges screen customers and transactions against OFAC sanctions lists. OFAC can require assets to be blocked after a match.
What happens if screening flags you?
When screening matches a risk rule or a sanctions list, the exchange investigates. It may file a Suspicious Activity Report with FinCEN and freeze or close your account. If your account is frozen, contact the exchange and provide source-of-funds documents. Ask for a review.
Frequently asked questions
No. AML screening looks for money laundering and sanctions risks, not tax owed to the IRS.
Not reliably. US rules still reach many crypto businesses, even if a decentralized exchange runs fewer customer checks.
Most checks clear during account opening. A match can trigger a manual review that takes longer.
Not directly. The duty sits with the exchange, so your own wallet is not checked until it touches a regulated exchange.
