TRM labs provides risk management and compliance protocols to identify, monitor, and prevent illegal financial activity. TRM labs tools are used by Circle (USDC), Binance and many other companies in the blockchain space to provide AML/CFT compliance and satisfy regulatory requirements.
The zkBob integration with TRM is a proactive solution to prevent criminal funds from ever entering the zkBob privacy pool. When a wallet is connected to zkBob, the wallet address is screened for prior high-risk or suspicious behavior. This can include:
The address received or transferred funds from a known hack.
The address received or transferred funds from a sanctioned address.
The address participated in dark web transactions.
Other suspicious behavior as determined by TRM labs screening software.
If an address has engaged in past suspect activities it cannot connect or be used to deposit into zkBob. Withdrawals to a suspicious address are also prevented. These restrictions maintain a safe, secure and untainted environment for private transfers.