KYC / AML
KYC (know your customer) and AML (anti-money laundering) are the controls regulated firms use to identify their customers and to detect and report suspicious funds. The GENIUS Act requires payment stablecoin issuers to maintain an effective anti-money laundering program, suspicious-transaction monitoring and reporting, and a customer identification program that verifies account holders. The FATF says VASPs, including stablecoin issuers, should have AML/CFT controls including KYC, wallet screening, blacklisting and freezing and blocking capabilities.
What the sources say
| Source | Quote | Link |
|---|---|---|
| GENIUS Act, sec. 4(a)(5)(A)(i): AML program | "maintenance of an effective anti-money laundering program, which shall include appropriate risk assessments and designation of an officer to supervise the program" | govinfo.gov |
| GENIUS Act, sec. 4(a)(5)(A)(iii): suspicious transactions | "monitoring and reporting of any suspicious transaction relevant to a possible violation of law or regulation" | govinfo.gov |
| GENIUS Act, sec. 4(a)(5)(A)(v): customer identification | "maintenance of an effective customer identification program, including identification and verification of account holders with the permitted payment stablecoin issuer" | govinfo.gov |
| FATF Targeted Update on VAs/VASPs, July 2026 (copy hosted by FIAU Malta): private-sector recommendations | "VASPs, including Stablecoin issuers and qualifying DeFi arrangements, should establish robust AML/CFT /CPF compliance frameworks" | fiaumalta.org |
| FATF Targeted Update 2026: scope of AML/CFT controls | "their AML/CFT controls, including KYC, wallet screening, blacklisting, and, where appropriate, whitelisting mechanisms as well as freezing and blocking capabilities" | fiaumalta.org |
Related terms
See also
- Review: revain.org/exchanges/kraken/
- Review: revain.org/exchanges/binance/
Checked against the sources on 2026-11-01.