KYC/AML (Know Your Customer / Anti-Money Laundering)
Strict Definition
"Regulations designed to prevent financial crimes by requiring businesses to verify the identity of their clients and monitor for suspicious activity."
Liability Check // Risk Analysis
The 'Privacy vs. Compliance' risk. Implementing KYC on pseudonymous blockchains is technically challenging and can alienate core Web3 users, yet failure to do so can lead to criminal charges.
Knowledge Context // Related Terms
Auditor NotesVS-AN-2026
"Partner with 'Privacy-Preserving KYC' providers who use Zero-Knowledge Proofs to verify identity without storing sensitive PII on-chain."
"Integrate blockchain analytics tools (like Chainalysis or Elliptic) to automatically flag transactions from sanctioned addresses."
"Maintain a 'Compliance Manual' that specifically addresses how your company handles the transition from pseudonymous to identified accounts."
SCHEMA_VER: AEO_3.2
LAST_AUDIT: 1/8/2026
HASH: KXUHL7