Compliance

Redacted is designed to provide privacy while maintaining full regulatory compliance. Privacy and compliance are not enemies — they coexist by design.

OFAC and Illicit Address Screening

All deposits are screened against OFAC blacklists and known illicit addresses. Deposits from flagged addresses are blocked at the protocol level, ensuring the privacy pool remains clean.

Proof of Innocence (PoI)

Users can generate a Proof of Innocence — a cryptographic proof that demonstrates their funds are not associated with bad actors, without revealing their full transaction history. This allows users to prove compliance without sacrificing privacy.

Secure Origin Verification

Withdrawals can only be directed to the address that originally deposited the funds. This creates an auditable trail from origin to destination, satisfying Anti-Money Laundering (AML) and Know Your Customer (KYC) frameworks — while keeping individual transactions within the system private.

While transactional privacy is maintained throughout the use of Private Banking Accounts, the starting and end points of the transaction flow are verifiable on the public blockchain.

Shareable Read-Only Key

Users can optionally generate a read-only private key that allows third parties (auditors, tax professionals, regulators) to view transaction history without gaining control over funds. It is exclusively the user's choice to create and distribute this key — ensuring user control and privacy.

How Compliance and Privacy Coexist

Aspect
Privacy
Compliance

Deposit screening

Transparent

OFAC + illicit address blocking

Deposit source

Recorded on-chain

Traceable to origin wallet

Internal activity

Shielded by stealth addresses + ZK proofs

Viewable via optional read-only key

Fund legitimacy

Private by default

Provable via Proof of Innocence

Withdrawal destination

Must match deposit origin

Auditable end-to-end flow

Transaction history

Private by default

Shareable at user's discretion

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