AML/KYT

AML/KYT

Introduction

Safeheron AML/KYT is a key component of Safeheron’s compliance features. By integrating with top-tier AML/KYT service providers, it offers KYT and KYA screening for our clients, meeting their compliance and transaction security needs.

What is KYT?

KYT stands for Know Your Transaction. It is a compliance tool that identifies and alerts on suspicious transactions through real-time monitoring of transaction behaviors and analysis of on-chain data.

What is KYA?

KYA stands for Know Your Address. It is used to identify and assess the risks of blockchain addresses. A blockchain network is a public "ledger," and an address is equivalent to an "account." Through big data analysis of address tags, historical interactions, and other information, KYA determines whether the address is involved in high-risk activities such as hacking, fraud, sanctioned entities, or money laundering.

Which Service Providers are Integrated?

Safeheron has currently integrated three AML/KYT service providers: Chainalysis, Elliptic, and MistTrack.

Screening Configuration

To use AML/KYT, please log in to the Safeheron Web Console and navigate to "Compliance" > "AML/KYT".

If your team has not activated the AML/KYT function, please contact technical support or sales to enable it.

KYT Overview

Risk Ratio

Risk Ratio = (Severe + High) / (Severe + High + Medium + Low) × 100%

It displays the risk ratio of transactions that have undergone KYT screening, reflecting the proportion of severe and high-risk transactions among all screened transactions. A higher ratio indicates a larger share of high-risk transactions in your team’s activities, so attention should be paid to your team’s transaction security and address security.

Screening Statistics

Screening Rate = (Number of transactions undergoing KYT screening) / (Total number of transactions eligible for KYT screening) × 100%

The screening rate represents the proportion of transactions that have undergone KYT screening among all transactions eligible for KYT screening. Safeheron recommends an optimal screening rate of 40%-80%, and you can adjust the transaction screening rate by modifying the screening policies.

Remaining Quota

Displays the remaining quota of the team and the status of integrated service providers.

Service Provider Integration Methods

Safeheron supports two integration methods: Standalone Service and Platform Service.

Standalone Service: You need to purchase screening services from the provider and bind the corresponding API to Safeheron for use. This method supports the standalone service integration of Chainalysis and Elliptic.

Platform Service: You do not need to purchase screening services from third-party providers; simply use the API of the Safeheron platform for screening. This method supports the platform service integration of MistTrack.

Screening Policy

Safeheron allows the separate configuration of screening policies for inbound and outbound transaction, to determine which transactions will trigger KYT screening.

The policy is blank in the initial state. You can click "Edit" to open the policy editor.

There is no need to worry about not knowing how to configure the policy. Safeheron provides default policy templates that meet the requirements of most scenarios, and you can directly use these templates for KYT screening.

If the templates provided by Safeheron do not meet your team’s screening requirements, you can add customized screening policies tailored to your team.

Inbound Screening Policy Configuration

Inbound Screening Policy: Determines which transactions credited to the team wallet will undergo KYT screening.

The inbound screening policy requires configuration of the following items:

Policy Name: Failure to set a name may lead to identification errors, and policy names must be unique.

Source Account: The type of From address that initiates transfers to your team’s wallet. Options include All Accounts, Whitelist, Connected Profile, and One-time Addresses.

Inbound Wallet: The receiving wallet of your team. You can select All Wallets or specific ones.

Screened Assets: The types of assets that trigger screening. You can select all eligible assets for screening or specific ones.

Screening Thresholds: Supports configuring which service provider to use for screening based on different thresholds. A maximum of 10 threshold ranges can be added per screening policy.

Outbound Screening Policy Configuration

Outbound Screening Policy: Determines which transactions sent out from the team wallet undergo KYT screening.

The outbound screening policy requires configuration of the following items:

Policy Name: Failure to set a name may lead to identification errors, and policy names must be unique.

Source Account: Your team’s wallet. You can select All Wallets or specific ones.

Destination Account: The type of To address that your team transfers funds to. Options include All Accounts, Whitelist, Connected profile, and One-time Addresses.

Screened Assets: The types of assets that trigger screening. You can select all eligible aseets for screening or specific ones.

Screening Thresholds: Supports configuring which service provider to use for screening based on different thresholds. A maximum of 10 threshold ranges can be added per screening policy.

Policy Sorting

Screening policies are matched in ascending order of priority. Once a screening policy is matched, the system will stop matching subsequent policies.

You can sort the screening policies by dragging and dropping.

Publish Policy

After completing the policy configuration, you can choose to publish the policy or cancel the editing.

After the policy is successfully published, all new transactions will be matched and screened in accordance with the new policy, and this will not affect transactions that have already triggered screening.

Risk Level Configuration

Safeheron supports multiple AML service providers. Different providers adopt distinct judgment criteria and display standards for KYT/KYA risk levels, which are not only inconvenient to understand but also difficult to distinguish in terms of their significance during the approval process. To address this, we offer a unified risk level configuration that standardizes the naming of risk assessments. During the approval workflow, risks are distinguished by different colors and textual labels, enabling intuitive differentiation.

Risk Level Configuration

Safeheron's risk levels are categorized into 5 tiers: Severe Risk, High Risk, Medium Risk, Low Risk, and Unknown, which correspond to risk outcomes from different service providers based on their respective standards.

A non-editable one-to-one mapping is maintained with Chainalysis' risk results.

Elliptic supports configuring a risk score range of 0-10, while MistTrack supports a risk score range of 0-100. For both Elliptic and MistTrack, higher scores indicate higher risk levels.

Alert Methods

When KYT or KYA screening triggers a service provider's risk result/risk score that maps to a corresponding risk level, alerts can be delivered via Webhook, APP Push, and email. This facilitates the team's risk assessment and subsequent actions.

Safeheron also provides risk level configuration templates, which you can directly use or edit based on your team's compliance requirements before use.

Execute Screening

KYT Outbound Transaction Screening

If an outbound transaction triggers both the transaction policy and the KYT policy, Safeheron will initiate a KYT screening for this transaction at the time of outbound confirmation. You can view the screening status and results on Web Console and Safeheron APP.

KYT Inbound Transaction Screening

If an inbound transaction triggers the KYT screening policy, the screening will be executed with a 60-second delay after the transaction has received 1 blockchain confirmation. This ensures that the transaction is successfully processed on the blockchain and can be detected by the service provider.

KYA Screening

Screen Wallet Addresses via App / Web Console

For KYA screening of your own wallet, you can click "Screen KYA" on the Receiving Page to perform the screening.

Screen KYA for Whitelist

Screen KYA for Connected Profile

Screen KYA for One-time Addresses before Transfer

Initiate KYA Screening via API

KYA address screening is also available through the OpenAPI. Common use cases include:

• Automatically checking a destination address for risk before initiating a withdrawal

• Running scheduled batch screening on vault wallet or whitelist addresses

• Integrating KYA screening into your own business systems and workflows

Prerequisites:

• The compliance service is enabled and providers are configured

• The API Key must have the AML Query permission enabled (configure it on the API Key permissions page in the Web Console)

For the full API reference, see: OpenAPI Docs > Compliance > KYA Address Screening

Screening Orders

You can view all KYT and KYA screening orders via Compliance > AML/KYT > Screening Orders.

Click on Order Details to view the full information of your order.

Screening Report

You can view the details of the screening report.

AI Summary

Given the high level of professionalism required to understand screening reports, they are poorly readable for most non-compliance professionals. Therefore, Safeheron has introduced an AI-powered report summary feature, which significantly improves the readability of reports and assists your team members in making decisions.