AML Violations: What They Are, How They Happen, and How to Avoid Them

When you hear AML violations, anti-money laundering breaches that break financial laws designed to stop criminals from hiding illegal money through digital assets. Also known as crypto money laundering, these violations are why governments now demand strict rules from exchanges, wallets, and even individual traders. It’s not just about big banks anymore—anyone moving crypto across borders, using P2P platforms, or trading on unregulated exchanges can accidentally trigger a red flag.

Most AML violations, occur when users ignore identity checks, mix funds from unknown sources, or use platforms that don’t follow basic reporting rules. Also known as know your customer (KYC) failures, these mistakes often happen because people think crypto is anonymous. It’s not. Every transaction leaves a trail. In 2025, Australia’s AUSTRAC shut down five crypto firms for not verifying users. Germany’s BaFin did the same. Nigeria’s SEC now requires licenses just to operate. These aren’t threats—they’re happening right now. And it’s not just exchanges. If you’re running a crypto business, accepting payments, or even helping friends trade without proper records, you could be at risk.

Look at the posts below. You’ll see real cases: Tunisia’s underground traders using VPNs to bypass bans, Iran’s military stealing power to mine Bitcoin, and fake exchanges like Xevenue and UPXIDE that never checked who their users were. These aren’t just scams—they’re AML violations waiting to be caught. Even legitimate projects like Serum DEX and Saturn Network collapsed partly because they couldn’t meet compliance standards. The lesson? If you’re not verifying identities, tracking sources, or reporting suspicious activity, you’re part of the problem—even if you didn’t mean to be.

What you’ll find here isn’t theory. It’s real examples of what happens when AML rules are ignored, misunderstood, or broken. From FBAR filings for crypto accounts over $10,000 to how Australia’s Travel Rule forces exchanges to share user data, every post shows how the rules are changing—and how to stay on the right side of them.