How PassimPay Combats Money Laundering and Protects Its Clients' Funds

Money laundering is a criminal process in which fraudsters try to conceal the source of illegally obtained funds and make them "clean" by disguising them as revenue from illegal business activities.

In the cryptocurrency world, this problem is especially serious because the anonymity of transactions complicates detecting the origin of such operations. Statistics speak for themselves: in just the first half of 2025, criminals stole more than $2.17 billion in cryptocurrency, exceeding the total damage for 2024. If the trend continues, losses will surpass $4 billion by the end of 2025. Besides financial losses, this severely undermines trust in the crypto market overall and creates negative associations.

Therefore, fighting money laundering (AML, Anti-Money Laundering) must become a key priority for all market participants. PassimPay is no exception.

How PassimPay Tackles This Problem

Since PassimPay is registered in Poland, we strictly comply with the local Act on Counteracting Money Laundering and Terrorism Financing (Ustawa o przeciwdziałaniu praniu pieniędzy oraz finansowaniu terroryzmu), as well as operate in accordance with the EU AML Directives IV, V, and VI.

To combat such fraud, we have built our own compliance control system that identifies and prevents any suspicious operations. The main measures we apply include:

• KYC/KYB (Know Your Customer or Business / Customer Due Diligence) — thorough identification and verification of clients at various levels. We verify not only the user's identity but also the source of their funds.
• Automated tools that automatically check transactions for links to illegal activity. These are based on KYT (Know Your Transaction) technology—continuous monitoring and automatic analysis of all transfers.
• A risk-oriented approach — we assess every client and each transaction from a risk perspective, evaluating how likely they are connected to suspicious actions. We base this on recommendations from international organizations (FATF) and Polish legislation. This allows us to focus more on cases that could genuinely cause problems.
• For client and transaction verification, we collaborate with top professional companies providing automated solutions. They help us quickly and accurately detect potential issues and reduce errors. We recently detailed client verification (KYC) in one of our articles.
• Regular employee training — all our staff regularly undergo anti-money laundering and counter-terrorism financing training. This helps us stay up-to-date with the latest requirements and maintain a high level of security.

How Do Fraudsters Operate?

Unfortunately, our team encounters attempts at laundering almost daily. However, thanks to the mechanisms mentioned above, we successfully fight them. One recent case perfectly demonstrates how our AML system works.

A week ago, someone tried to send bitcoins to our client’s account — an online store. At first glance, it seemed like a normal transaction, but our AML bot immediately "noticed" that these coins came from a wallet previously marked as linked to theft and fraud — meaning it was “dirty” cryptocurrency.

What did we do? The transaction was instantly frozen, not allowed to proceed. If these bitcoins had entered the store’s account and circulated, our client would have been using illegally obtained funds. If they then tried to withdraw the money to an exchange or exchanger, due to links with criminal operations, their funds could be blocked, and they would lose access to the money.

We not only froze the suspicious transaction but also checked all the risks. Ultimately, PassimPay's goal is not merely to block a fraudster but to protect our clients.

Why This Matters for Clients and the Market

At first, it may seem that fighting money laundering is just a formality or legal compliance. However, this case shows that such crimes hinder all market participants—even those unrelated to fraudsters.

If "dirty" money enters circulation, it creates great risks for honest users. What if someone accidentally receives proceeds earned by criminals? Then, if an exchange learns about this, they may block the account along with all the funds. The victim, not the fraudster, suffers. AML is designed specifically to punish fraudsters and protect regular users.

Moreover, the results achieved by AML processes reinforce trust in the entire cryptocurrency market because they make fraud much rarer. The fewer fraud cases, the safer and more comfortable the environment is for everyone. Thus, strict control is not just a formality but a crucial protection mechanism that keeps the crypto space honest for all users.

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