Fraud Prevention, KYC and AML Compliance for P2P and Cryptoasset Exchange Operations Training Course

P2P Exchange Operations and the Fraud Risk Landscape

• Escrow-based order lifecycle and asset release mechanisms.
• Understanding risk exposure: off-platform fiat versus on-platform crypto.
• Consequences of fraud losses, chargebacks, and bank claims.

Exercise 1, Mapping the Exposure: Teams will trace a buy order and a sell order from initiation to release, identifying every point where off-platform payments disrupt the link between identity and funds.

Regulatory Framework and Supervisory Expectations

• FATF Recommendations, VASP obligations, and the travel rule.
• Cryptoasset regulatory authorities and exchange house licensing.
• Jurisdictional risks, grey-list monitoring, and sanctions exposure.

Fraud Typologies in P2P Trading

• Payment channel deviations and mismatched payer accounts.
• Triangulation, third-party payers, and reused payment proofs.
• Partial payments, altered amounts, and visually similar figures.

Case Study, Five Recurring Patterns: Participants will classify real, anonymized dispute records against these five typologies and identify the control that failed in each instance.

False Confirmations, Forged Receipts and Account Takeover

• Orders marked as paid without actual transfers.
• Edited screenshots and falsified bank receipts.
• Cross-phishing in order chats and credential theft.
• Hijacked accounts used to defraud other users.

Workshop, Phishing in the Order Chat: Teams will compare genuine support messages with fraudulent ones and draft the takedown and revalidation path for the reported account.

KYC for Individuals: Level 1 and Level 2

• Level 1 data capture and identity document review.
• Level 2 revalidation, video-selfie liveness checks, and list screening.
• Aligning verified identities with payment instruments.

Lab, Onboarding Under Pressure: Participants will conduct Level 1 and Level 2 reviews on sample files, noting discrepancies that necessitate revalidation.

KYC for Legal Entities and Beneficial Ownership

• Corporate documents, representation powers, and signatories.
• Beneficial ownership chains and indicators of control.
• Risk factors for legal persons and periodic reviews.

Identity Fraud and Document Forensics

• Forged, borrowed, and synthetic identities.
• Liveness bypasses, deepfake attempts, and injection attacks.
• Triggers for revalidation following disputes or compromise claims.

Lab, Document Forensics: Participants will examine tampered documents and screenshots for inconsistencies in fonts, layouts, metadata, and account numbers.

AML Screening, Sanctions and PEP

• List matching, tolerance levels, and false positives.
• PEP identification, adverse media analysis, and source of wealth.
• Enhanced due diligence and escalation thresholds.

Customer Risk Assessment and the Risk-Based Approach

• Factors including customer, product, channel, geography, and behavior.
• Risk rating, review triggers, and treatment decisions.
• Tailoring due diligence to actual risk levels.

Transaction Monitoring and Blockchain Analytics

• Withdrawal approvals based on account age, KYC status, and history.
• Wallet attribution, high-risk counterparties, and fund tracing.
• Chargeback-prone gateways and payment method risks.

Case Study, The Large Withdrawal: Participants will evaluate a withdrawal request with a mixed funding history, decide whether to approve or escalate, and justify their decision based on monitoring criteria.

Evidence Standards for Payment Proof

• Acceptable evidence: statements and uninterrupted recordings.
• Authenticity checks for documents, captures, and metadata.
• Recording what has been verified and what remains unverified.

Lab, Evidence or Artifact: Teams will categorize submissions into acceptable evidence, insufficient evidence, and probable fabrication, specifying what should be requested instead.

Disputed Evidence and Interbank Delays

• Resolving cases where both parties provide valid evidence.
• Waiting periods for interbank processing and preventive holds.
• Documented decision criteria for time-expired orders.

Workshop, Both Sides Are Right: Teams will resolve a dispute where both buyer and seller hold seemingly genuine proof and defend the outcome.

Action and Sanctions Playbook

• Freezing collateral, restricting accounts, and suspension.
• Deadlines for partial payments and returns to originating accounts.
• Refunds to incorrect banks: fees and resolution timeframes.
• Restricted balances and retention of new deposits.

Exercise, Drafting the Sanction: Participants will draft the action, notice, and timeframe for three escalating cases and test them against playbook criteria.

Case Management, Documentation and Escalation

• Case files, internal notes, and evidence retention.
• Escalation matrix and department head review.
• Suspicious activity reporting and record-keeping.

Capstone: End-to-End Fraud Case

• Order review, evidence assessment, and identity revalidation.
• Escalation, sanctions decision, and counterparty resolution.
• Justification memo and peer review.

Capstone, Full Case Run: Each team will manage a complete simulated case from the initial suspicious message to the final decision, presenting a written justification for peer review.

Diagnostic and Advisory Session (Additional Component)

• Review of current practices and protocol gaps.
• Guidance on evidence standards and disputed cases.
• Guidance on action and sanctions criteria.