What are AML&KYC procedures in the context of the crypto industry?
AML&KYC procedures play an important role in ensuring the legality and transparency of financial transactions using cryptocurrencies. They include monitoring transactions and identifying suspicious activity, which helps prevent the use of cryptocurrencies for money laundering, terrorist financing, and other illegal activities. The introduction of AML procedures in crypto projects demonstrates the desire to create a safe and transparent environment for users and to comply with legislative and regulatory requirements. KYC procedures can include various verification stages depending on the company"s policy and regulatory requirements, ensuring a balance between security and convenience for users.

What are the meanings of the Risk Score labels that appear during an AML check of a cryptocurrency address?
After conducting an AML analysis of a crypto address, the data is sorted by several criteria, which are combined with labels that inform about the low, medium or high level of risk associated with the address. These labels indicate the presence of direct or indirect links with various sources, depending on the legitimacy of which the crypto address is assigned the corresponding risk scores (Risk Score).

How are Risk Score labels assigned to a crypto address?
A crypto address is assigned a specific set of Risk Score labels as a result of analyzing its interaction with the blockchain. The risk score is determined based on the direct or indirect connections (incoming and outgoing transactions) of this address with various sources, platforms, resources, and segments.

Why can the Risk Score of a crypto address differ across AML services?
There are many AML services in the cryptocurrency space, and the data can indeed differ between them. The databases of these services are regularly updated depending on the key criteria set by regulators, from national jurisdictions to international organizations such as FATF and OFAC. So, if one AML analyzer indicates the presence of high-risk labels, while another service does not provide such information, this may indicate that the information on the crypto address in one AML service has not yet been updated. Once the data is received and processed, the numerical values of various indicators (high-risk labels, overall Risk Score) can become more consistent between different services, tending to average values.

Why are Risk Score labels not displayed in the detailed analysis based on the results of the AML verification of a crypto address?
Risk Score tags may not be detected for several reasons. First, the crypto address may not have interacted with the blockchain before and is new. Second, the crypto address may have been used relatively recently, and AML analyzers have not yet had time to collect enough data and install the appropriate tags. In such cases, the risk score may be missing or inconclusive until more information becomes available.