> For the complete documentation index, see [llms.txt](https://docs.compliance.phalcon.blocksec.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.compliance.phalcon.blocksec.com/manual/risk-engines/default-engines.md). # Default Risk Engine List Phalcon provides a set of preset risk engines based on FATF guidelines and industry best practices. These engines are enabled by default and can be customized to match your business needs. ## Address | Name | Description | | --------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | | **FATF Guideline: Wallet Owned by Illicit Entities** | This risk engine is designed to identify addresses owned by illicit entities involved in illegal activities such as attacks, scams, ransomware, and darknet markets. | | **FATF Guideline: Wallet Owned by High-Risk Entities** | This risk engine aims to identify addresses associated with high-risk entities, including unregulated gambling services, addresses blocked by stablecoin contracts (like USDC, USDT), and exchanges with inadequate KYC procedures. | | **FATF Guideline: Exposure to Illicit Entities** | Detects addresses with direct or indirect exposure to illicit entities. | | **FATF Guideline: Exposure to High-Risk Entities** | Detects addresses with direct or indirect exposure to high-risk entities. | | **Unknown Address with Large Transfers** | Identifies addresses with single transactions (inflow or outflow) exceeding $50,000, indicating potentially anomalous high-value activity that requires further investigation to prevent potential illicit fund transfers. | | **High-Frequency Trading Address** | Detects addresses engaged in frequent transactions, which may suggest smurfing or layering behaviors associated with money laundering. | | **Potential Intermediary Address** | Detects addresses that may be used as intermediaries for rapid fund transfers, a common technique in money laundering. | | **Address with Direct Blacklist Interaction** | Detects addresses that interact directly with blacklisted addresses. | | **Wallet Owned by Entity in FATF Grey-List Jurisdiction** | Identifies addresses owned by entities registered in FATF grey-list jurisdictions. | | **Illicit Exposure - Address (High)** | Detects addresses with significant direct or indirect exposure to confirmed illicit entities, indicating a high risk of criminal activity. | | **Illicit Exposure - Address (Medium)** | Detects addresses with moderate direct or indirect exposure to illicit entities, capturing early or limited signals of criminal risk. | | **High-Risk Exposure - Address (Medium)** | Detects addresses with noticeable exposure to high-risk entities, indicating potential compliance issues. | | **High-Risk Exposure - Address (Low)** | Detects addresses with limited exposure to high-risk entities, serving as a low-severity risk alert signal. | ## Transaction | Name | Description | | --------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | | **Transaction Involving Illicit Entities** | Detects transactions that involve addresses associated with illicit entities. | | **Transaction Involving High-Risk Entities** | Detects transactions that involve addresses associated with high-risk entities, such as those related to gambling, restricted jurisdictions, or non-KYC compliant exchanges. | | **Transaction Exposed to Illicit Entities** | Detects transactions with direct or indirect interactions with illicit entities. | | **Transaction Exposed to High-Risk Entities** | Detects transactions with direct or indirect interactions with high-risk entities. | | **Large Value Transfer Transaction** | Detects transactions involving large transfers, either inflow or outflow, exceeding a specified threshold. | | **Rapid Fund Transit Transaction** | Detects transactions where funds are rapidly passed through in a short period, which may indicate layering or money laundering activities. | | **Transaction with Direct Blacklist Interaction** | Detects transactions with direct links to blacklisted addresses, indicating potential involvement with illicit entities. | | **Transaction Involving Entity in FATF Grey-List Jurisdiction** | Identifies transactions involving addresses owned by entities registered in FATF grey-list jurisdictions. | | **Illicit Exposure - Transaction (High)** | Detects transactions with significant direct or indirect interactions with illicit entities, indicating a high compliance risk. | | **Illicit Exposure - Transaction (Medium)** | Detects transactions with a moderate level of exposure to illicit entities, capturing suspicious but less severe interactions. | | **High-Risk Exposure - Transaction (Medium / Upper Range)** | Detects transactions with concentrated exposure to high-risk entities, indicating a higher transaction risk. | | **High-Risk Exposure - Transaction (Medium)** | Detects transactions with a moderate level of exposure to high-risk entities, highlighting potential compliance issues. |