Suspicious · Medium risk
High-risk exchange in an AML report
Exchanges with weak or no customer checks.
What it means
Exchanges that operate without proper licences, skip identity checks for large amounts, or are based in jurisdictions on the FATF list of high-risk countries.
Why it is a risk for you as the recipient
Weak checks make these exchanges attractive for laundering. Funds from them are not dirty by default, but they are harder to vouch for.
Example situation
Illustrative scenario, not a real case. Your buyer withdrew USDT from an offshore exchange that does not verify customers. Your exchange may ask where the buyer got it.
What to do if it shows up in a report
- Look at the share: a small percentage is common, a majority is a reason to ask questions.
- Prefer counterparties who withdraw from regulated exchanges.
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
Who decides which exchange is “high risk”?
Each analytics provider sets its own criteria, usually licensing, KYC practice and jurisdiction. Labels can differ between checkers.