Ongoing screening of blockchain transactions against risk indicators — sanctioned addresses, mixers, known theft proceeds — as distinct from identity checks on the customer.
Why it matters
KYT is what causes deposits to be frozen or queried after the fact when funds have passed through an address a screening provider has flagged, even where the customer had no involvement in the flagged activity.
Not advice. Definitions are for understanding, not instruction. Nothing here is financial, legal, tax or security advice.