AML glossary

Short explainers on the terms crypto businesses meet when screening addresses and transactions: what AML screening is, how to read a risk score and what to do about mixer exposure.

Updated:

Source of funds reference

A check breaks the funds on an address down by source. Each source belongs to one of three danger groups, which determines how much it contributes to the final score.

SourceGroupWhat it means
mixer DangerFunds passed through a mixer/tumbler to obscure the trail. A primary laundering tool.
dark_market DangerFunds from darknet markets — platforms for illegal trade.
dark_service DangerServices tied to drug trafficking, terrorism financing or child abuse.
stolen_coins DangerStolen coins (hacks, thefts from wallets and exchanges).
scam DangerFunds obtained by deception — phishing, Ponzi schemes, fraud.
ransom DangerFunds from extortion and ransomware.
sanctions DangerSanctioned entities (OFAC and other lists).
illegal_service DangerFunds from illegal services and unlawful activity.
gambling DangerFunds from unlicensed gambling services.
child_exploitation DangerEntities associated with child exploitation.
terrorism_financing DangerEntities associated with terrorism financing.
exchange_fraudulent DangerFraudulent exchanges: exit scams, illegal behavior, confiscated funds.
enforcement_action DangerEntity subject to law-enforcement proceedings.
malware DangerFunds associated with malware distribution.
risky_exchange SuspiciousHigh-risk exchange: no KYC, weak jurisdiction, high darknet exposure.
p2p_exchange_mlrisk_high SuspiciousHigh-risk P2P exchange: no license/KYC, attractive for laundering.
atm SuspiciousFunds obtained via a crypto ATM operator.
unnamed_service SuspiciousUnidentified service or counterparty with no established reputation.
exchange TrustedLicensed exchange — the main legitimate source of funds.
p2p_exchange TrustedLicensed P2P exchange without an intermediary.
payment TrustedPayment processor / payment service.
merchant_services TrustedPayment gateway (acquiring), business payment acceptance.
marketplace TrustedLegitimate marketplace — payment for lawful goods and services.
wallet TrustedFunds in verified wallets.
miner TrustedCoins mined by miners.
liquidity_pools TrustedDeFi liquidity pools.
decentralized_exchange_contract TrustedDecentralized exchange (DEX) contracts.
infrastructure_as_a_service TrustedInfrastructure-as-a-service providers.
seized_assets TrustedAssets seized by the government.
other TrustedOther sources: airdrops, token sales, etc.
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