Frequently Asked Questions

ChainComply is a compliance automation platform purpose-built for crypto-related Enhanced Due Diligence. It unifies on-chain and on-exchange data, automates illicit-activity checks via your chosen blockchain forensics provider, and produces standardized Enhanced Due Diligence (EDD), audit-ready reports.

We complement your BAT—not replace it. We sit on top of your chosen BAT, add exchange data (not just on-chain), and compute wealth-generation history. Then we generate a standardised PDF report. Here is how we are different: BYO forensics: Use your preferred BAT; we pull in its risk signals and annotations. Exchange + on-chain story: Combine read-only exchange histories (APIs/CSV) with on-chain flows for full provenance. Wealth generation view: Summarizes how funds were accumulated (trading, staking, airdrops, etc.) to support SoF/SoW decisions. Ops focus: Case workflow, simplicity and one-click PDF exports—minutes instead of hours. When to use a BAT directly: Deep, graph-level investigations and novel typologies—keep your BAT; we sit downstream to package evidence for compliance reviews. For more information, go here: https://www.chaincomply.io/post/chaincomply-vs-blockchain-forensics-tools-the-ultimate-compliance-tools-for-financial-institutions

Banks, Crypto-exchanges, VASPs, high-value goods merchants.

The workflow is designed for clarifying the funds movement between exchanges.. In fact, for VASPs, we deliver the highest value when deposits come from another exchange—we surface the origin platform, counterparties within the client and account, and risk signals. For direct on-chain deposits, it may be easier to assess the risk of the transaction with the Blockchain Analysis Tool, however, we still provide on top of that: wealth generation by investment activity automated documentation

First line of defence and AML investigators—non-experts can get productive after few hours of training.

Manual crypto-related SOW reviews are slow and cumbersome (often requiring a couple of days of expert work) and rely on complex tools. ChainComply streamlines that process.

Most cases take about 1 hour of work once data sources are connected and ingested. Complex cases may require in-depth analysis of specific periods, counterparties, or chain hops. Investigation speed is our primary KPI, and we strive to reduce case handling time with every release.

Wealth managers can onboard clients in minutes, generate clear SoW/SOF narratives, and focus on portfolio strategy rather than data gathering.

To help banks and crypto-exchanges coexist within the new tradFi-crypto ecosystem while maintaining high AML standards.

Money movement analysis: interactive SoF discovery, funds-flow graph, counterparty analysis, and source of wealth Investment activity analysis: current wealth, capital gain creation in time by platform and by asset, trading profit estimation, and DeFi gains Illicit activity analysis: risk assessment per account/wallet, and risky-pattern flags sanctioned-address screening

No, it is very simple. Clients connect their wallets/exchanges and answer a few high-level questions. ChainComply handles the rest.

Yes—one-click PDF, audit-ready for internal and regulator reviews. Before finalizing your export, you have access to an editable version for comments and image inserts.

Designed for simplicity; non-experts can start after ~2 hours of training provided by ChainComply within the starter package.

Connect sources → (we auto-ingest transaction histories) → check if the data reconciles -> review dashboard insights (flows, risks, counterparties) → decide and document the decision -> export report as a PDF.

We save days of work for AML experts by: consolidation of transaction data sources, and automation of: Source of Wealth analysis and synthesis (automated documentation), and illicit activity checks on client's blockchain interactions

Yes—simplified flow graphs and counterparty tables provide explainable paths for decisions. You can drill down to the level of single transaction.

Flow graphs, counterparties, sanctioned hits, risk per account/wallet, wealth creation history and current wealth with its source—all exportable.

It standardizes how evidence is assembled and presented, it is matching the EBA’s expectation for advanced analytics in crypto cases, which in turn becomes a global AML best practice.

Yes—the platform emphasizes SoF and supports wealth-generation context to backstop SoW narratives.

Yes—on-exchange plus on-chain for a complete story.

Risky-pattern flags and per-account/wallet risk assessments spotlight anomalies fast.

We bring that context into one view so LoD1 doesn’t over-rely on KYC red flags or default to blind rejections.

KYT is part of the core AML vocabulary we support alongside SoF. (Slide 14).

Compliance with MiCA/EBA guidance, cost savings across data gathering/investigation/reporting, retention of crypto-holding clients, and better fraud deterrence. It is also a great way to boost organisational learning.

It gets banks ready to safely offer crypto-based products by normalizing crypto investigations.

Invitations come from our channel partners (banks, private wealth teams, crypto tax accountants) who trust our platform to streamline due diligence.

Luxembourg, Polish, Latvian, and Hong Kong authorities have praised our standardized reports—though our “unlicensable” data-provider status means we rely on your regulated entity to hold the official license.

Both on-exchange and on-chain transaction data, so the customer story isn’t limited to blockchain traces. On-chain: Declare wallets you control across over 90 blockchain integrations, and we're constantly adding new ones as the blockchain space evolves (recent addition: Hyperliquid). Exchanges: Connect via read-only API keys (no withdrawal permissions) or upload CSV statements. We support over 100 of the largest crypto exchanges, covering 99% of the trading volume.

A quick “Add your wallets/exchanges” flow with secure, read-only connectors and API keys where needed. On-chain: Declare wallets you control; we ingest transaction histories. Exchanges: Connect via read-only API keys (no withdrawal permissions) or upload CSV statements.

We download the whole transaction history, including deposits, withdrawals, trades and other revenues (e.g. staking rewards). We do not receive any information about the client’s identity.

Yes—connectors are read-only to pull histories securely for investigations.

When clients interact with licensed financial institutions (AML-obliged entities), the institution is legally required to collect and process specific personal data for KYC/AML purposes. In some cases, as part of Enhanced Due Diligence, this may involve reviewing the client's wallet and exchange account history to comply with regulations and to ensure the safety and integrity of the financial system. CSV files upload is always a fallback.

This processing is based on a legal obligation of financial institutions—not a waiver of privacy rights—and clients retain their data-protection rights, subject to applicable AML laws and statutory retention periods.

We are already connected to multiple providers; however, you can bring your own blockchain analysis tool; we will integrate and leverage their labels and scores.

Yes—counterparty analysis and hidden-wallet discovery are part of the dashboard.

Combine read-only exchange histories (APIs/CSV) with on-chain flows to achieve a comprehensive and holistic view of transactions. Our system calculates wealth-generation history beyond simple movement tracing.

ChainComply offers a risk dashboard, which flags: risky wallets based on flags from the connected blockchain analysis tool, and risky patterns with predefined rules for monitoring money movement.

IT teams: No IT deployment needed. We are a SaaS platform. Business teams: Brief training (2 hours).

ChainComply is ISO 27001 certified and therefore adheres to best security practices, with end-to-end encryption, role-based access controls, and full audit logging.

MiCA (Markets in Crypto-Assets Regulation) came into effect on 1 January 2025, introducing, among other measures, an EU-wide licensing regime for Virtual Asset Service Providers (VASPs). This regime — comparable in regulatory weight to a limited banking licence — requires VASPs to meet specific capital, governance, and compliance standards, including anti-money laundering (AML) and consumer protection rules. As a result: Regulatory oversight: All crypto-asset activities in the EU are now subject to harmonised rules, replacing fragmented national regimes. Convergence with traditional finance: Banks, electronic money institutions (EMIs), and crypto firms now operate under a unified framework, fostering integration between crypto and conventional financial services.

EBA, mandated by MiCA regulation and the Travel Rule regulation, sets the following requirements: Update your AML policies and procedures to include exposure to crypto-assets Enhance your CDD/Enhanced DD processes for high-risk customers and transactions (coming from CASPs). In certain cases, Source of Wealth / Source of Funds investigations will be the only way to conclude on the Enhanced DD. Invest in new KYT technologies Update transaction monitoring systems (CASP transfer detection) Assess the need for blockchain analysis/forensic tools Increase focus on staff training to ensure awareness of new risks to gain an understanding of advanced analytics tools

MiCA (Markets in Crypto-Assets Regulation) and, especially, the EBA AML guidance update of 16/01/24 that followed MiCA, require EU banks and crypto-asset service providers to apply Enhanced Due Diligence to high-risk crypto clients, including documenting the source of wealth and source of funds for significant crypto holdings. ChainComply automates this process end-to-end: it collects on-chain and exchange transaction histories, reconstructs how the client accumulated their crypto wealth, flags material risk signals, and produces a structured, audit-ready PDF report that satisfies the documentation standards expected by EU supervisory authorities. Reports are designed in collaboration with European banks and are structured to withstand regulatory review.

Yes—in specific circumstances under the FATF standards and in many jurisdictions’ rules. FATF requires “reasonable measures” to establish SoF/SoW for PEPs and expects SoF checks “where necessary” as part of risk-based CDD/EDD. What FATF says (global baseline): Under Recommendation 10 (CDD), firms must scrutinise relationships and transactions to ensure they match the customer profile, “including, where necessary, the source of funds.” The EDD examples in the Interpretive Note include “obtaining information on the source of funds or source of wealth.” (FATF) Under Recommendation 12 (PEPs), firms must take reasonable measures to establish the SoW and SoF of PEP customers/BOs. (FATF) Local rules, then make this explicit for certain sectors or risk profiles. Do you want more detailed explanations on rules in EU, USA, Dubai or Singapore? Contact us to let us know.

United States (BSA/FinCEN & supervisory guidance): Legally required for private banking accounts: covered institutions must ascertain the source(s) of funds deposited and review activity against that SoF (31 CFR §1010.620). (eCFR) CLARITY Act: The Digital Asset Market Clarity Act would formally designate digital commodity exchanges, brokers, and dealers as "financial institutions" under the Bank Secrecy Act. This would extend the existing BSA/FinCEN EDD framework - including risk-based SoF/SoW expectations - to a significantly broader set of crypto intermediaries currently outside that perimeter. The bill is pending Senate approval as of mid-2026. Risk-based expectation elsewhere: the FFIEC BSA/AML Manual tells banks to obtain source of funds and wealth for higher-risk customers as part of EDD. This aligns with FATF’s risk-based approach (i.e., SoF/SoW when risk warrants it, including for PEPs). (bsaaml.ffiec.gov,FATF)

Dubai (VARA) – Virtual Asset Service Providers: VARA’s Compliance & Risk Management Rulebook (Part III.E) requires VASPs, during ongoing CDD, to ensure transactions are consistent with the customer profile, including, where necessary, the source of funds. For Enhanced CDD (high-risk clients or where the UBO is a PEP), VASPs must identify and verify the source of funds and the source of wealth. (rulebooks.vara.ae)

EU: Supervisors expect firms to establish—and where risk is high, verify—SoW/SoF. EBA says in some cases verifying SoW/SoF “may be the only adequate risk-mitigation tool.” EBA provided detailed explanations on Enhanced Due Diligence triggers, process and data to be collected in the (crypto) EBA guidance of 16/01/2025.

Singapore (MAS): Banks must establish SoW/SoF for PEPs; DPT providers follow risk-based AML rules; MAS also issued 2024 guidance on establishing SoW.

Although unlicensed as a standalone data provider, our platform delivers evidence packages for Source of Wealth (SoW/SOF) validation, which we have co-designed with private banks that are experts in SoW investigation and documentation over the past two years.

No—your regulated institution owns the decision; ChainComply accelerates and evidences the analysis and data collection.

Automated sanctioned-address screening is built into the blockchain analysis/forensic tools (like Chainalysis, Elliptic) that we integrate with.

Not directly. We are not a Know-Your-Customer tool as our dataset does not include the identity of the client. We are a KYT- Know-Your-Transactions tool, and we enable enhanced transaction-based due diligence and risk assessment, which in turn makes your KYC more holistic.

Yes—our workflow aligns with transaction-based risk assessment. We are however, not a real-time monitoring tool, but a tool for Enhanced Due Dilgence. More on that is explained here: https://www.chaincomply.io/post/the-airport-security-check-meets-source-of-wealth-due-diligence

Yes. ChainComply automatically generates all necessary documentation — including Source of Wealth (SoW), Source of Funds (SoF), and complete transaction histories — to support regulatory inquiries. Our reports are designed to meet enhanced due diligence requirements, enabling you to demonstrate compliance in that second level of checks when requested by authorities.

Not necessarily. In line with a risk-based approach under AML regulations, you should define in your compliance policy the specific client categories or transaction scenarios that trigger SoW checks. For example, this may be applied to high-risk clients, certain transaction thresholds, or periodic sampling (e.g., every 50th or 100th client). The key is to align your practice with regulatory expectations while avoiding unnecessary operational burden.

No. ChainComply is a post-transaction investigation tool that you can use for Enhanced Due Diligence on a client’s total wealth (all clients' wallets and exchanges).

ChainComply is focused on the Enhanced Due Diligence and Source of Wealth layer of crypto compliance, which is complementary to Travel Rule obligations. While ChainComply does not function as a Travel Rule messaging solution, it provides the counterparty and transaction context that AML teams need when assessing Travel Rule-related risk — including identifying the originating exchange, wallet counterparties, and cross-platform fund flows.

Yes. The ChainComply Source of Wealth report is a structured PDF document built specifically to meet the documentation standards expected by banking supervisors and financial regulators in the EU. It captures the full case review trail, data sources used, risk signals assessed, analyst decisions, and final rationale, so that every step of the EDD process is auditable. The report format was developed in direct collaboration with European and Swiss banks to align with supervisory expectations under AMLD and MiCA frameworks. The Clarity Act in the US is pointing towards the same bank-standard requirements.