Home › Crypto Compliance Glossary › What is Crypto AML?
What is Crypto AML? 2025 Beginner Guide
Crypto AML (Anti-Money Laundering) refers to the policies, controls and monitoring processes used by crypto exchanges, custodial wallets, OTC desks, and VASPs to prevent money laundering, terrorist financing and sanctions evasion involving digital assets.
While traditional AML focuses on bank transfers, fiat deposits and financial instruments, crypto AML must track on-chain movement of virtual assets, detect suspicious wallet behaviour, identify high-risk transactions and comply with global FATF, MiCA, FinCEN and local AML laws.
Why is Crypto AML Important?
Crypto is fast, global and pseudonymous — making it attractive for criminal exploitation. Regulators expect all VASPs to have robust AML programs equivalent to traditional financial institutions.
- Crypto is used in fraud, scams, ransomware and darknet markets.
- Sanctioned actors use crypto to bypass traditional banking.
- Regulators now require full AML frameworks from all VASPs.
- Banks demand strong AML controls before offering VASPs accounts.
- Without AML, a VASP risks license loss and criminal penalties.
Traditional AML vs. Crypto AML — Key Differences
Traditional AML deals with fiat transactions. Crypto AML deals with blockchain-based movement of value.
- Transactions: Banks use SWIFT/ACH; crypto uses wallet-to-wallet transfers.
- Speed: Crypto moves instantly; laundering happens rapidly.
- Visibility: Blockchain provides transparency but requires analytics tools.
- Identities: Wallets aren’t tied to names unless KYC is done.
- Typologies: Mixers, chain-hopping, privacy coins, cross-chain bridges.
Core Components of a Crypto AML Program
- KYC & CDD / EDD: Identity verification and risk profiling.
- Sanctions Screening: Against OFAC, UN, EU, UK and high-risk jurisdictions.
- Blockchain Analytics: Risk scoring wallets and transactions.
- Travel Rule Compliance: Sharing sender/receiver information between VASPs.
- Transaction Monitoring: Detecting unusual on-chain patterns.
- SAR/STR Reporting: Filing reports to regulators for suspicious behaviour.
- Ongoing Monitoring: Behavioural patterns, repeated risk, velocity spikes.
- Recordkeeping: Keeping audit-ready logs of all AML actions.
Common Crypto AML Red Flags
- Deposits from mixers/tumblers
- Transactions linked to scams, darknet markets, ransomware
- Chain-hopping to obscure traceability
- Use of high-risk exchanges
- Deposits immediately followed by withdrawals (no trading)
- Wallets associated with sanctioned countries
- Sudden transaction spikes with no explanation
Who Works in Crypto AML?
- Crypto AML Analyst
- Transaction Monitoring Investigator
- Crypto Compliance Officer
- Blockchain Investigator
- VASP AML Manager
- Travel Rule Compliance Lead
These roles are among the fastest-growing positions in global financial crime compliance.
How Do I Learn Crypto AML Properly?
Crypto AML requires structured training across blockchain analytics, sanctions, risk scoring and regulatory expectations. AC3O provides globally recognized, ONRIGA-accredited certifications trusted in 180+ countries.
AC3O – ONRIGA Accredited Crypto Compliance Certifications
- C3O – Certified Crypto Compliance Officer (Gold Standard): Covers AML, KYC, Travel Rule, VASP licensing, DeFi/NFT risk and blockchain investigations. View C3O →
- C2AO – Certified Crypto AML Officer: 100% crypto AML-focused — transaction monitoring, red flags, typologies and SAR/STR reporting. View C2AO →
- C2KO – Certified Crypto KYC Officer: Complements AML by strengthening onboarding, CDD and EDD. View C2KO →