> For the complete documentation index, see [llms.txt](https://messier.gitbook.io/catalogue-de-messier/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://messier.gitbook.io/catalogue-de-messier/messier-applications/horizon/aml-screening-and-deposit-control.md).

# 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.

***

#### 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.

***

#### 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.

***

#### 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**.


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