How do I avoid getting caught in an AML/KYC trap?

[Teacher]

Hello! We have prepared for you a number of recommendations in the “question-answer" format, following which you can minimize the risks of blocking your funds by exchange offices.

• The exchange's status is “fair”, which means that it will definitely not block funds?
• What precautions can I take when exchanging?
• Recommendations for exchange offices
• How can I prevent client funds from being blocked?

The exchange's status is “fair”, which means that it will definitely not block funds?​

No. If the exchange's status is "fair", it means that it doesn't have any reviews related to holding the client's funds. However, we must not forget that all scam exchangers were once spammed for the first time. Perhaps an honest exchange office will decide to pick you up for the first time.

What precautions can I take when exchanging?​

1. Before the exchange, ask the exchanger to check the wallets from which you will send and to which you will accept funds. Please specify whether the exchange office is satisfied with these banking details.
2. Ask, does the exchange accept cryptocurrency to a local wallet or directly to an exchange account? Keep in mind that if an exchange accepts funds to an exchange account, the chance of blocking funds increases significantly.
3. Please specify what will happen to your cryptocurrency if the exchange considers the transaction risky? Depending on the answer, make a decision whether to cooperate with this exchange office or not.
4. It is advisable to use currencies with the ability to send anonymous transactions, for example: Monero, Dash or ZCash. AML cannot be verified for such transactions.
5. Please note! If you are using ZCash, make sure that you are working with an anonymous address!
6. If you are going to change a large amount, to diversify the risks, break it down into parts and make several exchanges.
7. To receive cryptocurrency, use new (clean) addresses. Most cryptocurrencies allow you to create a new address in a few clicks.
8. Study the reviews on antiswap.info and on other resources. Maybe someone else's user experience will be useful to you.

Recommendations for exchange offices​

How can I prevent client funds from being blocked?
We offer 3 options, you can use them together or separately:

1. Accept funds to an intermediate (local) address. After the client completes the transaction, check its risk-score and transfer it to the exchange only if you are satisfied with the purity of funds. Otherwise, return the funds back to the client.
2. Require the client's wallet to evaluate the risk-score before providing the transfer details. Provide banking details only when you are satisfied with the purity of the client's cryptocurrency.
3. Do not use exchanges that tend to block funds for bad AML or for any other reason.

We hope that these recommendations will help you avoid being blocked!