AML and KYC for cryptocurrency payments: why checks are necessary and what to do if your payment is put on hold

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What are AML and KYC?

AML (Anti-Money Laundering) refers to a set of measures designed to detect and prevent transactions involving illegally obtained funds. For crypto payments, AML measures primarily analyze transactions: where the funds came from, which wallets and services they passed through, and how risky the transaction is.

KYC (Know Your Customer) is a procedure for establishing a customer's identity and verifying the information they provide.

KYC is part of AML procedures, but the two checks answer different questions. KYC asks, “Who are you?” Transaction analysis asks, “Where did this money come from?” That's why an official ID alone may not be enough: your identity may be verified while the origin of the specific funds remains unconfirmed.

Crypto payments in Octo Browser are processed by our payment partners, specialized services that handle such transactions. If a payment requires an additional check, the partner will notify us. If more information is needed, we'll request it from you by email.

Why might a payment be flagged for review?

There can be several reasons for this, and it doesn't necessarily mean there's something wrong with your wallet.

• The history of the funds. Transactions on most blockchains are public, so previous cryptocurrency transfers can be traced. Analytics systems check wallets against known services, and they also look for wallets linked to fraud, hacks, darknet marketplaces, or sanctions. If such connections are detected, the transaction is assigned a higher risk score, even if you have no connection to those activities.

• Services the funds passed through. The risk may be associated with an exchange or another service you used. For example, a platform may operate without verifying its customers, be subject to sanctions, or be registered in a country considered high-risk.

• Insufficient information. Sometimes, the service needs information it doesn't have to complete the check, such as proof of identity or details about how you obtained the cryptocurrency.

Here's how this can happen in practice. You buy USDT on a P2P platform from a seller whose funds previously passed through high-risk wallets; or you withdraw coins from an exchange that analytics systems classify as high-risk; or you receive cryptocurrency as payment from a customer without knowing its history. Your wallet may be brand new, but the coins in it carry the history of all their previous transfers.

Requirements and assessment criteria vary by service and jurisdiction. As a result, one platform may accept a transaction without questions while another may flag it for review.

What to do if your payment is under review

1. Find and read the email. It will arrive in English from help@octobrowser.net at the email address associated with your master account. The wording is standard for these types of checks: it describes the transaction assessment, not a conclusion about you personally. If you can't find the email in your inbox, search for it using the sender's address, check your spam folder, or contact Customer Service.

2. Send the requested information by replying to the email. If anything is unclear, ask your question in a reply. It's important to continue the correspondence by email: this is the only way to arrange a refund to a wallet other than the one you used to pay.

3. Contact Customer Service if necessary. If you're reporting a missing payment, include the transaction hash (TxID), which is used to locate the payment. The coin and network, amount, and date will also be useful. Customer Service can tell you the current status of the transaction: for example, whether your information has been forwarded to the payment partner or whether a response has been received. There is no fixed review time. It depends on the circumstances and how quickly the required information is provided.

What information might be requested? The exact list is always included in the email. Typically, it may include:

• A description of the source of funds: where and how you obtained the cryptocurrency and whether crypto exchanges or payment services were involved in the transfer.

• A wallet address for the refund, using the same coin and network as the original payment.

• KYC information if identity verification is required: full name, address, phone number and email address, passport or ID card, and a selfie with the document.

We refund the same amount in the same coin to the wallet address you provide in your email reply. You can use any wallet, provided it's on the same network as the original payment.

If you can't access your email, the funds can only be returned to the wallet from which the payment was sent. If that was a crypto exchange’s wallet, the funds may become stuck on the exchange’s side, making it impossible to recover them. That's why it's best to restore access to your email if you need the refund sent to a different wallet.

Access needed urgently? You don't have to wait for the check to be completed. Create a new payment link using a different coin or network and pay again. For the new payment, use a new wallet and funds unrelated to the previous transfer. If you pay from the same wallet or use the same funds, the payment is highly likely to fail the AML check again, even with a different partner. You'll then have to resolve the refund issue with both partners. Before sending the payment, check the funds' risk score using a third-party AML service. Keep in mind that a low risk score reduces the likelihood of a review but doesn't guarantee that the payment partner won't put the payment on hold. To resolve the issue with the first payment, you must also continue the correspondence by replying to the email you received.

Important. We don't need a seed phrase, private keys, or wallet or exchange passwords to verify your identity or the source of your funds. Never share them with anyone, including people claiming to work for Octo Browser or a payment service.

We send emails about payment checks only from help@octobrowser.net to the email address associated with your master account. Check the full sender address carefully: scammers may use addresses that look similar. If a request comes from a different address, don't reply and report it to Customer Service.

We accept KYC documents only in reply to an email from help@octobrowser.net. Don't send them in chats or messaging apps.

How can the review end?

The review outcome depends on the results of the transaction analysis and the payment partner's decision. We therefore can't guarantee a particular outcome or timeline in advance. Possible outcomes include:

• A refund. A payment put on hold following a review is not credited. The funds are returned to the wallet address you provide in your email reply, and you must make the payment again using a different source, coin, or network. If you don't reply to the email, the funds can only be returned to the wallet you originally paid from.

• Additional questions. If the information you've provided isn't sufficient, we may ask for clarification or further documents.

• A refund after KYC. In some cases, the refund can only be considered after your identity has been verified.

• A change to the payment method. As a precaution, we may disable payments in that coin or on that network through the current payment partner. If the same payment method is available through another partner, you can still use it. Otherwise, it will no longer be available for your account.

• Account suspension. If there are serious indications of risk, your account may be suspended. The payment and refund are handled separately, so you should reply to the email regardless.

Refunds aren't processed automatically: you must reply to the email or contact Customer Service. There is a limited period in which a refund can be made. Once it has passed, the funds can no longer be returned, so it's best to reply as soon as possible.

We don't disclose the details of our risk assessment, including exactly which indicators were detected or how they were evaluated. The email contains all the information you need to resolve the issue.

FAQ

I've already completed KYC on my exchange, with a service, or in my wallet. Why am I being asked for additional information again?

KYC verifies your identity only for the service where you completed the check. It doesn't tell us where the specific funds came from. Each transaction is checked separately, so a new payment may raise questions even if your identity has already been verified. An exchange conducts KYC for its own purposes, and that check doesn't replace checks performed by other services.

The transaction has been confirmed on the blockchain. Why hasn't my payment been credited yet?

Confirmation on the blockchain only means that the transfer has been completed on the network. Crediting the payment is a separate step. The payment partner must process the transaction, and AML checks are part of that process. If the transaction is flagged for review, crediting is put on hold. There may also be another reason, such as the transfer amount being lower than the invoice amount, the payment being sent over the wrong network, or the payment link having expired. In any case, contact Customer Service and provide the transaction hash.

What happens if I don't provide the documents?

We won't be able to complete the check without the requested information. There is a limited period in which a refund can be made; if you don't reply to the email in time, the funds can no longer be returned. If you're required to complete KYC, refusing to do so may result in payment restrictions or prevent you from receiving a refund.

I checked my wallet with an online service, and its risk score is low. Why was my payment put on hold?

Users typically check the wallet itself. The payment partner, however, analyzes the specific transaction, meaning the path taken by the exact coins you sent.

I can't access the email address associated with my master account. What should I do?

Contact our Customer Service, and we'll share the contents of the email with you in the chat. However, in this case, the funds can only be returned to the wallet from which the payment was sent. If the payment came from a crypto exchange service, the funds may become stuck on the exchange’s side, making it impossible to recover them. That's why it's best to restore access to your email. If KYC is required for the refund, the funds can't be returned without access to your email at all, because we only accept documents in reply to the email.

How can I reduce the likelihood of a review in the future?

It's impossible to eliminate the possibility of a review entirely, but you can reduce its likelihood. Buy cryptocurrency on exchanges and platforms that verify their customers, and choose reputable sellers on P2P platforms. Don't use mixers or route funds through chains of intermediate wallets. This doesn't “clean” the coins; it increases their risk score. Avoid services that promise to “clean” cryptocurrency or guarantee that it will pass an AML check. Keep records confirming your purchase or receipt of cryptocurrency: they'll be useful if you need to verify the source of your funds.

Can I check my wallet or funds before making a payment?

No, we don't conduct AML checks in advance. The payment partner analyzes the transaction only after it has been received. You can check funds in advance using third-party AML services, but a low risk score there doesn't guarantee that the payment will pass the partner's check. To reduce the likelihood of a review, follow the recommendations provided in the previous answer.