OFAC Crypto Compliance Glossary Part 1

What crypto compliance means for sanctions, and how wallet screening keeps agent payments clean.

TL;DR

TL;DR: Crypto compliance is applying sanctions and AML obligations to virtual currency activity, including screening wallet addresses against OFAC listings. OFAC has designated crypto wallets, so paying a listed address is a sanctions violation.

What crypto compliance is

Crypto compliance extends sanctions and anti-money laundering obligations to virtual currency. OFAC, the Office of Foreign Assets Control, lists not only individuals and entities on the SDN List but also cryptocurrency wallet addresses. Transacting with a listed wallet is prohibited the same way dealing with a listed person is.

Why crypto compliance matters for agents

AI agents increasingly pay in stablecoins such as Base/USDC. The payment rails, including x402, AP2, ACP, and Coinbase AgentKit, move money but do not screen the recipient. An agent that sends funds to an OFAC-listed wallet completes a prohibited transaction, and because enforcement is strict liability, intent is not required.

How screening fits in

The sanctionsai.dev API screens a counterparty before an agent pays, returning ALLOW or BLOCK in one call under 100 ms. It covers 947 OFAC-listed crypto wallets and 19,218 SDN names across 16 jurisdictions, synced hourly, with a free tier of 5 checks per day. Not documented: any on-chain analytics or tracing features beyond list screening.