Agentic Wallets FAQ 10: How Do Agentic Wallets Handle Compliance?

Every transaction passes through automated Know Your Transaction (KYT) screening before execution, with zero additional integration work required from developers.

Automated screening checks:

• Sanctions lists: Recipient addresses are checked against OFAC and other regulatory sanctions lists
• Known bad actors: Addresses associated with hacks, scams, or fraudulent activity are flagged
• Pattern analysis: Transaction patterns indicative of money laundering or suspicious activity are identified
• High-risk counterparties: Addresses flagged by blockchain analysis firms are reviewed

Automatic blocking: Transactions that fail screening are automatically blocked with no agent action required. The agent receives an error response indicating the transaction was denied for compliance reasons.

Transparent operation: The compliance layer operates automatically and transparently, requiring zero additional integration work from developers. All compliance logic is built into the agentic wallet infrastructure.

Auditability: All wallet activity is logged and auditable through the CDP Portal dashboard. Developers can review complete transaction histories, failed transaction attempts, and compliance screening results for regulatory reporting or internal auditing purposes.

This built-in compliance approach ensures agents cannot inadvertently violate sanctions or interact with malicious addresses, even if their logic errors or prompt injection attacks attempt such transactions.