GLOBAL REGULATORY COMPLIANCEVERSION 2.4 · AUGUST 2026

AML / CTF COMPLIANCE POLICY

International Anti-Money Laundering (AML), Counter-Terrorist Financing (CTF), and on-chain Know-Your-Transaction (KYT) standards enforced across Shenzhen Labs DePIN infrastructure.

STANDARDS ALIGNMENT

FATF & MAS Principles

Modeled after Financial Action Task Force (FATF) guidance for Virtual Asset Service Providers (VASPs).

ON-CHAIN SCREENING

Real-Time KYT Tracking

Automated blockchain wallet heuristics screen incoming USDT activations against known sanctions and illicit mixer clusters.

PROHIBITED REGIONS

Sanctions Enforcement

Strict prohibition on entities or IP addresses originating from OFAC, UN, and EU sanctioned territories.

LEGAL DOCUMENTATION // REF: SZL-AML-2026

SHENZHEN LABS AML / CTF COMPLIANCE POLICY

Effective Date: August 2026 · Foundation Desk Singapore

1. Policy Statement & Commitment

Shenzhen Labs Global Foundation ("Foundation") maintains zero tolerance for money laundering, terrorist financing, proliferation financing, sanctions evasion, or any other unlawful activity conducted through its decentralized edge compute infrastructure.

Although decentralized physical networks operate on peer-to-peer compute primitives, Shenzhen Labs implements industry-standard risk management controls to prevent malicious exploitation of node staking contracts, payment gateways, and reward pools.

2. Know-Your-Transaction (KYT) & Blockchain Analytics

Shenzhen Labs employs automated on-chain risk scoring algorithms to evaluate deposit addresses and incoming transaction flows:

  • Mixer & Tumbler Detection: Deposits originating directly from cryptocurrency privacy mixers (e.g. Tornado Cash, ChipMixer) are flagged and automatically blocked from node activation.
  • Darknet & Exploit Tracking: Addresses linked to known exchange hacks, ransomware syndicates, or darknet market operations are permanently blacklisted from consensus verification.
  • Sanctions Lists: Wallet addresses published on global sanctions rosters (including OFAC Specially Designated Nationals, UN Security Council, and EU restrictive lists) cannot interact with protocol contracts.

3. Prohibited Geographic Jurisdictions

Shenzhen Labs does not offer validator activation or compute services to individuals, residents, or entities located within comprehensive sanctions jurisdictions, including:

  • Democratic People's Republic of Korea (North Korea)
  • Islamic Republic of Iran
  • Syrian Arab Republic
  • Republic of Cuba
  • Crimea, Donetsk, and Luhansk regions

4. Suspicious Activity Reporting (SAR) & Account Freezes

If an operator is detected engaging in transaction structuring, automated sybil identity spoofing, or routing illicit funds, Shenzhen Labs reserves the right to suspend the operator's validator session, freeze pending testnet emission claims, and cooperate fully with lawful inquiries from accredited regulatory and judicial authorities.

5. Record Keeping & Audit Protocols

All transaction metadata, cryptographic activation proofs, and support ticket interaction logs are preserved in secure encrypted audit archives for a minimum period of five (5) years in compliance with international financial record-keeping standards.

6. Compliance Officer & Legal Inquiries

For law enforcement requests, regulatory compliance audits, or sanctions clearance inquiries: