FCIBT key terms

A distributed ledger that records transactions in cryptographically linked blocks, replicated across many nodes. Each participant can verify history independently, and past entries become impractical to alter without controlling most of the network.

The protocol rule set by which network participants agree on which transactions and blocks are valid, such as proof of work or proof of stake. Consensus determines finality and shapes how costly it is to rewrite ledger history.

An asymmetric scheme where a public key verifies signatures and a private key creates them. In cryptoassets, control of funds follows from possession of the private key, so key compromise means asset loss with no central reversal mechanism.

A string derived from a public key that identifies where funds can be sent on a given network. Addresses are pseudonymous, reusable, and not inherently tied to a person, though off-chain data often links them.

Arrangement determining who controls the cryptographic keys that authorize transfers. Custody may be self-managed, held by a third party, or split across multiple holders, and each model creates different risk and record-keeping obligations.

Code deployed on a programmable blockchain that executes automatically when conditions are met. Smart contracts can hold and move funds, which makes their logic a target for exploits and a vehicle for laundering schemes.

A shared interface specification, such as ERC-20 for fungible tokens, that lets wallets and applications interact with tokens uniformly. Standards shape how transfers appear on-chain and how easily they can be traced.

A cryptoasset designed to hold a steady value, usually by reference to a fiat currency and backed by reserves or collateral. Stablecoins dominate illicit payment flows because they combine speed with price stability.

A cryptoasset that obscures sender, receiver, or amount by default using techniques like ring signatures or zero-knowledge proofs. Their use complicates tracing and often triggers heightened scrutiny from regulators and exchanges.

A unique on-chain token representing ownership of a specific digital or physical item. NFTs create distinct transfer histories, which can support provenance checks but also enable wash trading and value manipulation.

A public web tool for searching blocks, transactions, and addresses on a blockchain. Investigators use explorers to confirm balances, inspect contract calls, and pull raw transaction data for deeper analysis.

A unique identifier generated when a transaction is submitted, used to look up its status and contents. It is the primary reference for documenting a specific transfer in reports and evidence logs.

A ledger design where funds exist as discrete unspent outputs that must be consumed whole, with change returned to a new address. Tracing requires following inputs and outputs rather than account balances.

A ledger design that tracks balances per address, similar to a bank account, as used by Ethereum and similar networks. Transfers debit one account and credit another, simplifying balance checks but complicating input-based tracing.

The practice of extracting meaning from public ledger data using queries, heuristics, and clustering to identify flows, entities, and risk. Results are probabilistic and must be corroborated with off-chain evidence before being relied upon.

A laundering pattern where a large amount is repeatedly split, with a small portion moved onward at each step and the remainder forwarded. The pattern signals deliberate obfuscation and helps analysts follow a dominant value path.

An assumption that in a transaction with multiple outputs, one output returns leftover funds to the sender. It is useful in UTXO tracing but can be wrong, especially when wallets or users deliberately produce misleading outputs.

The process of linking an address or cluster to a real-world person, organization, or service using exchange records, public statements, blockchain data, and other evidence. Conclusions should state a confidence level and supporting basis.

Grouping multiple addresses believed to be controlled by one entity, typically through heuristics such as common input ownership. Clusters are estimates, and errors can misattribute activity, so analysts should note known limitations.

The assumption that addresses spent together as inputs to one transaction share a single controller, since signing requires each private key. It underpins most clustering but fails for custody services and collaborative transactions.

Sending or receiving funds repeatedly at the same address, which links transactions and strengthens clustering inferences. Good wallet practice avoids reuse, so persistent reuse can itself be a behavioral indicator.

A service that pools and redistributes funds to break the link between source and destination. Mixers are used for legitimate privacy but are also a common laundering step, and many jurisdictions impose obligations on their operators.

Moving value across multiple blockchains, often via bridges or swaps, to obscure origin and frustrate single-ledger tracing. Investigators must reconcile timing, amounts, and addresses across each network involved.

A protocol or service that transfers value between blockchains by locking assets on one chain and issuing equivalents on another. Bridges create traceable link points but also concentrate exploit and laundering risk.

A cryptographic method proving a statement is true without revealing the underlying data. It supports privacy features and scaling solutions, and its use can limit what an investigator can determine from public ledger data alone.

A service converting conventional currency into cryptoassets, typically through an exchange or payment processor. On-ramps are key identity touchpoints and a primary source of records linking a person to an address.

A business conducting activities such as exchange, transfer, custody, or safekeeping of virtual assets for customers. Such entities are subject to AML/CFT duties under the FATF standards and national licensing regimes.

A wallet where a third party controls the private keys and acts as custodian on the user's behalf. The custodian holds identity records, making it a critical source of attribution data for investigators.

A wallet where the user alone controls the private keys, with no intermediary holding identity data. Transfers involving such wallets raise Travel Rule questions and require other evidence for attribution.

A protocol letting users swap assets directly from their own wallets, often without an account or identity check. Its use can break the link to a verified customer, complicating attribution and source-of-funds analysis.

A FATF requirement that originating and beneficiary institutions exchange specified sender and receiver information for qualifying virtual asset transfers. Thresholds and implementation vary by jurisdiction, and coverage of unhosted wallets remains uneven.

Checking customers, counterparties, and wallet addresses against designated-persons lists before and during a relationship. For cryptoassets this includes address-level lists, and a match generally requires blocking and reporting.

The process of identifying customers, verifying their identity, and assessing their risk and expected activity. In crypto firms it also covers source of funds and wallet ownership evidence where transfers are unusual.

A filing to a financial intelligence unit describing transactions or behavior suspected of linking to illicit activity. Good reports state facts, dates, amounts, identifiers, and the reasoning that triggered suspicion, without speculation.

A documented, unbroken record of who collected, accessed, and stored each item of evidence and when. For digital evidence, it includes hashes of captured data so integrity can be demonstrated later.

Information gathered from publicly available sources such as websites, registries, forums, and social media. It supports attribution of addresses and entities but must be verified and its collection documented.