Danger · High risk
Enforcement action in an AML report
Entities under active legal proceedings or seizure orders.
What it means
Addresses connected to entities that are subject to legal proceedings — court orders, seizures, indictments — even before or without a sanctions listing.
Why it is a risk for you as the recipient
Funds from addresses under legal action may be claimed by authorities or victims. Exchanges often freeze them while the case runs.
- When Garantex was taken down in March 2025, the Justice Department announced charges against its administrators alongside the domain seizures.[1]
Example situation
Illustrative scenario, not a real case. Your buyer’s funds came from a service whose operators were recently charged and whose domains were seized.
What to do if it shows up in a report
- Decline further transfers.
- Keep records of your trade in case you need to show good faith.
A high risk score is a reason to look closer, not proof of a crime. A low score does not guarantee that an exchange or issuer will not freeze funds.
FAQ
Is enforcement action the same as sanctions?
No. Sanctions are a government listing; enforcement action covers court cases and seizures. An entity can have both.
Sources
- U.S. Department of Justice, Office of Public Affairs — Garantex Cryptocurrency Exchange Disrupted in International Operation (7 Mar 2025). Checked 4 Nov 2026.