What is AML?

Why does an exchange ask you to explain where the money you deposited came from?

Think of the check a bank may run when a transaction doesn’t match an account’s usual activity. Similarly, a crypto service provider verifies the customer’s identity, assesses the risk and monitors transactions. If there are suspicions, it is required to report them to the competent authority.

Customer identification (KYC) is one part of this process, not the whole of AML. The checks continue after an account is opened. For example, you may be asked for bank documents or a transaction history that explains the source of a deposit.

Why it matters

If you use an exchange or a bank for your transactions, these checks can affect how long a transfer takes. Incomplete information may, depending on the case, lead to the transfer being delayed, rejected or returned.

Holding and trading crypto is not money laundering in itself. Nor does a request for documents or a suspicious activity report prove that a crime took place. The direct obligations to run an AML program fall mainly on the obliged providers, not on someone who simply manages their own crypto.

In Greece

The main law is Law 4557/2018, as amended. In addition, Regulation (EU) 2023/1113 sets out the Travel Rule: specific sender and recipient information is collected and, where required, accompanies crypto transfers that involve a provider. This doesn’t mean every transfer is automatically reported as suspicious.

MiCA regulates the crypto market and providers more broadly; it isn’t the main AML law. Also, checking the source of funds doesn’t replace your tax return or any obligations you may have toward AADE (Greece’s Independent Authority for Public Revenue).

What to watch out for

A wallet you control yourself is not prohibited. However, when you send crypto from or to an exchange, you may be asked for details about the transfer or for verification of the address. There is no general “small amount” threshold that exempts all transactions from AML checks.

We suggest keeping a record of your purchases, sales, transfers and the source of your funds. Requirements depend on the case; a specific legal or tax issue needs personalized advice.