> For the complete documentation index, see [llms.txt](https://shiftrwa.gitbook.io/shift_education/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://shiftrwa.gitbook.io/shift_education/legal/vaults/kyc-aml.md).

# KYC / AML

To keep Shift secure and globally compliant, SHift checks before users deposit into any vault the status and the identity of the depositor.

Wallets interacting with Shift are screened for:\
Sanction exposure\
Known illicit actors\
High-risk jurisdictions\
Restricted jurisdictions

If a wallet fails screening, the transaction is automatically rejected by the sequencer before it can be included in a block. This enforcement applies uniformly whether the interaction occurs through the app or directly with its smart contracts.

Restricted Persons

(a) A person or entity who is subject to economic or trade sanctions administered or enforced by any governmental authority or otherwise designated on any list of prohibited or restricted parties (including but not limited to the list maintained by the Office of Foreign Assets Control of the U.S. Department of the Treasury) or

(b) a citizen, resident, organized, or otherwise located in a jurisdiction where the Interface may be ineligible for use (including without limitation the United States of America) (collectively, “”), or

(c) a citizen, resident, organized, or otherwise located in a jurisdiction or territory that is the subject of comprehensive country-wide, territory-wide, or regional economic sanctions by the United States or the Marshall Islands.

Restricted Jurisdictions

Users located in, organised in, or ordinarily resident in the following jurisdictions are prohibited from accessing Shift or interacting with its smart contracts (whether through the app or directly with smart contracts):

The Democratic People's Republic of North Korea, Islamic Republic of Iran, Burundi, Burkina Faso, Cameroon, the Democratic Republic of the Congo, Côte d'Ivoire, Crimea, Haiti, Iraq, Lebanon, Libya, Mali, Mozambique, Myanmar, Nicaragua, Somalia, South Sudan, Senegal, Sudan, Syrian Arab Republic, Tanzania, Trinidad and Tobago, and Yemen.

This includes jurisdictions identified by the Financial Action Task Force (FATF) as High-Risk Jurisdictions subject to a Call for Action or Jurisdictions under Increased Monitoring, commonly referred to as the FATF blacklist and greylist.

Wallet restricted notification

Freeze and Seize Capabilities

Shift implements freeze and seize functionality directly in its smart contracts to enable compliance with global AML/ATF regulations.

Freeze illicit funds: Temporarily restrict transfers from wallets identified as illicit, preventing further movement while investigations proceed.

Seize illicit assets: Permanently redirect illicit funds to a designated recovery or authority wallet, similar to mechanisms in USDC and USDT smart contracts. Asset seizure capability can only be activated under a lawful order (e.g., federal law in the US).\
How It Works