AML Screening & Deposit Control

Horizon integrates mandatory third-party AML screening at the deposit level to ensure the protocol cannot be used for illicit activity.

All deposits are screened in real time using MistTrack, an industry-recognized blockchain intelligence and compliance provider.

How Deposit Screening Works

1. Deposit Initiation When a user attempts to deposit funds into Horizon, the originating wallet address is automatically screened before acceptance.

2. Risk Evaluation MistTrack analyzes the address against known:

   • Sanctioned wallets

   • Stolen fund sources

   • Exploits and hacks

   • Darknet and illicit activity

   • High-risk behavioral patterns

3. Automated Decision

   • ✅ Clean address → Deposit is accepted and processed normally

   • ❌ Flagged address → Deposit is blocked and automatically refunded

4. No Privacy Compromise Screening occurs before funds enter the privacy pool and does not expose deposit or withdrawal relationships.

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What Happens if an Address Is Flagged?

• The deposit does not enter Horizon’s anonymity pools

• Funds are returned to the sender

• No private note is generated

• No anonymity set is affected

This ensures Horizon cannot be used to launder stolen or sanctioned funds while preserving privacy for legitimate users.

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Why This Matters

Horizon is not a traditional mixer.

By enforcing mandatory AML screening:

• Horizon exceeds international compliance standards

• Protects users from interacting with tainted liquidity

• Reduces regulatory risk for individuals and businesses

• Ensures long-term protocol sustainability

This design directly addresses the regulatory failures that led to enforcement actions against non-compliant mixers.

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Important Notes

• Screening is address-based, not identity-based

• No KYC is required

• No personal data is collected

• Only on-chain risk signals are evaluated

Privacy is preserved — compliance is enforced.