Documentation

Screening Methodology

This document describes how AMLRadar screens crypto addresses and entities, how the risk score is calculated, and what confidence level is assigned to each check. Intended for compliance officers, MLROs, and technical teams integrating the API.

Last updated: June 30, 2026 · Version 1.3

Contents

1. Data Sources 2. Wallet Screener — Check Logic 3. Entity Screener — Matching Logic 4. Risk Score Calculation 5. Mixer Exposure Detection 6. Confidence Levels 7. Caching and Freshness 8. Limitations and Disclaimer

1. Data Sources

AMLRadar aggregates three official sanctions lists, updated automatically every 2 hours:

Source	Publisher	Update frequency	Crypto addresses
OFAC SDN List	US Treasury	Monitored every 2h	780+ as of June 2026
EU Consolidated List	EEAS	Monitored every 2h	0 — list does not contain crypto addresses
UK Sanctions List	FCDO	Monitored every 2h	15 as of June 2026

Note: The EU Consolidated Sanctions List does not currently include cryptocurrency wallet addresses. This is a known limitation of the EU list format, not an AMLRadar limitation.

Note: Since 28 January 2026, the FCDO-published UK Sanctions List (UKSL) is the UK's single official sanctions source. Its data feed does not yet expose crypto wallet addresses as a structured field, so for wallet screening specifically AMLRadar still sources crypto designations from the legacy OFSI feed (frozen since 28 January 2026). See data sources for full detail.

2. Wallet Screener — Check Logic

When you submit an address to /api/screener/check, AMLRadar performs the following checks in order:

Address normalization

EVM addresses are lowercased. All other chain addresses are stripped of whitespace.

Cache lookup

Caching is currently disabled for wallet screening — every check always queries the live database directly, so from_cache is always false.

Sanctions database check

The normalized address is matched against all active entries using a case-insensitive exact match.

High-risk address check

The address is checked against a curated database of known mixer addresses and addresses associated with documented hacks or scams.

Indirect mixer exposure (EVM)

For EVM chains, AMLRadar queries Etherscan to retrieve the last 100 transactions and checks each counterparty against known mixer contracts.

Risk score calculation

A composite risk score (0–100) is calculated from all check results. See Section 4.

3. Entity Screener — Matching Logic

The entity screener searches names across all sanctioned entity records using three matching levels:

Match type	Logic	Confidence
EXACT	Case-insensitive full string match against entity_name	HIGH
PARTIAL	Query is contained within entity_name, or vice versa	MEDIUM
FUZZY	2+ significant tokens match, covering 50%+ of the query	LOW

Note: FUZZY-confidence matches always require manual verification against the primary source list before taking compliance action.

4. Risk Score Calculation

The risk score is a composite integer (0–100) calculated from all check results:

Factor	Points	Notes
OFAC SDN match	+60	Highest weight — primary enforcement list
UK OFSI match	+55	Direct legal effect in EU context
EU Consolidated match	+50	Applied when EU list contains crypto addresses
Multi-list overlap bonus	+10 per additional list	Applied when address appears in 2+ lists
Direct mixer (known address)	+35	Address is a known mixer contract or wallet
High-risk address (hack/scam)	+25	Associated with documented exploit or scam
Indirect mixer exposure	+20 base + 2/tx (max +15)	Via transaction history on Etherscan

Risk levels:

CRITICAL

80–100

Direct sanctions match. Requires immediate escalation.

HIGH

50–79

Sanctions match or significant mixer exposure. Requires manual review.

MEDIUM

25–49

Partial match or indirect exposure. Flag for enhanced due diligence.

LOW

1–24

Minor adverse signal. Note in file and monitor.

NONE

No adverse signals found in sources checked.

Note: A score of 0 does not guarantee that an address is safe. It means no adverse signals were found in the sources checked at the time of the query.

5. Mixer Exposure Detection

Direct exposure — the address itself is a known mixer contract or wallet.

Indirect exposure — the address has transacted with a known mixer, detected by analyzing the last 100 on-chain transactions via Etherscan.

0xd90e2f925da726b50c4ed8d0fb90ad053324f31b // Tornado Cash Router

0x722122df12d4e14e13ac3b6895a86e84145b6967 // TC 0.1 ETH pool

0x910cbd523d972eb0a6f4cae4618ad62622b39dbf // TC 1 ETH pool

0xa160cdab225685da1d56aa342ad8841c3b53f291 // TC 10 ETH pool

0xd4b88df4d29f5cedd6857912842cff3b20c8cfa3 // TC 100 ETH pool

Indirect mixer exposure is only performed for EVM chains. Bitcoin, Solana, Tron, XRP, and Monero do not currently support this check.

6. Confidence Levels

Level	Meaning	Applicable checks
HIGH	Exact match against official sanctions list or verified address database	Sanctions match, known mixer check
MEDIUM	Heuristic analysis of on-chain data. May produce false positives.	Indirect mixer exposure
LOW	Partial or fuzzy text matching. Requires manual verification.	Entity fuzzy match
N/A	Check not applicable for the queried chain or address type	Indirect mixer check on non-EVM chains

7. Caching and Freshness

Caching is currently disabled for wallet screening. Every check queries the live sanctions database directly, so from_cache is always false. The checked_at timestamp reflects the exact moment the check was performed.

Sanctions list synchronization runs every 2 hours via a scheduled job.

8. Limitations and Disclaimer

The EU Consolidated Sanctions List does not contain crypto addresses.
Indirect mixer exposure covers only the last 100 transactions.
Mixer detection is limited to EVM chains.
FUZZY-confidence entity matches always require manual verification.
Results reflect the state of sanctions lists at the time of the last sync (every 2 hours).
A CLEAR result does not constitute a legal clearance.

Disclaimer: AMLRadar provides information for compliance research purposes only. Results do not constitute legal advice and should not be relied upon as the sole basis for compliance decisions. Always verify findings against primary source lists and consult a qualified compliance professional.

Questions about the methodology? Suggestions for additional data sources?

compliance@aml-radar.com