Tesser provides comprehensive compliance management to meet regulatory requirements for financial institutions.
Pre-transaction screening
All wallets in the payout flow are screened pre-transaction, including risk categorization and scoring:
- For stablecoin payouts, the beneficiary's wallet is automatically screened.
- For fiat payouts, risk assessment is performed on any intermediary wallets.
- If your customers settle with you in stablecoins to fund payouts, wallets that customers send from can screened as well.
Wallets are screened on 152 factors across 4 categories:
- Ownership. The wallet is directly associated with or controlled by entities engaged in risky activities.
- Counterparty. The wallet has directly transaction with entities or addresses flagged for risky behavior.
- Behavioral. The wallet exhibits transaction patterns or behaviors commonly associated with illicit activity or obfuscation techniques.
- Indirect. The wallet has transacted with another address that is connected to risky activity. The activity of wallets up to 20 degrees removed is assessed as part of indirect exposure calculations.
See the full list of risk factors for a wallet below.
Transaction patterns for the originator and beneficiary are assessed:
This includes total volumes sent and received, frequency and velocity of activity, suspicious amounts, etc., as well as the specific interaction pattern between the originator and beneficiary.
Risk Scores and Outcomes:
Each payment is assessed for multiple risk factors, each scored from Low to Severe. The most severe detected risk factor, along with your compliance policy, determines whether the payment is approved, approved with a flag, requires review, or rejected.
- Low or Medium Risk: Automatic approval
- High Risk: Requires manual review by your organization
- Severe Risk: Automatically rejected
Risk Profiles
Tesser offers three pre-configured risk profiles to match your organization's risk appetite:
- Conservative: Lower risk thresholds, more transactions require manual review
- Balanced: Moderate risk tolerance with selective manual review
- Permissive: Higher risk tolerance, fewer manual reviews required
Each profile defines how the platform responds to different risk categories. Need a custom risk profile? Contact us to configure specific thresholds and actions tailored to your requirements.
[Optional] Counterparties can be sanctions screened.
In addition to any screening an organization conducts, Tesser can perform OFAC, PEP, and adverse media screening of beneficiaries and their fiat accounts prior to payment initiation. Contact us if you are interested in having Tesser perform sanctions screening.
Manual Review Process
Payments requiring manual review can be processed through the compliance review endpoint (/payments/{paymentId}/review):
Code
The response includes timestamp, and final decision.
Payments can also be reviewed and processed in the Tesser dashboard.
On-going Monitoring
Even after a transaction is complete, beneficiary wallets are monitored to track any changes in risk factors about the wallet.
Travel Rule
Tesser handles travel rule requirements automatically as you use the platform:
- No special actions are required to be compliant — the platform ensures required originator and beneficiary data is attached to payments where applicable.
- During counterparty and account creation, we collect the information needed to support compliant payments to/from that account (jurisdiction- and method-specific).
- In rare cases, additional KYB details may be requested at payment intent or execution time to satisfy provider- or corridor-specific rules.
Account information is collected and transmitted as part of Travel Rule compliance for stablecoin payouts or fiat payouts:
| Information transmitted | Required for Originator | Required for Beneficiary | Notes |
|---|---|---|---|
| Legal Name | Individual's legal first and last name, or Business's legal entity name | Individual's legal first and last name, or Business's legal entity name | |
| Physical Address | Legal address of the individual or business. (Street address, City, State/District/Region, Postal Code, Country) | Legal address of the individual or business. (Street address, City, State/District/Region, Postal Code, Country) | No P.O. Boxes or virtual addresses. |
| Legal Entity Identifier | Required for business originators of fiat payouts. Not required for individuals. | Not required for beneficiaries | Legal entity Identifier may be a registration number or tax ID. |
| Account Identifier* | Account Number or IBAN. | Account Number, IBAN, or Wallet Address. | For cash-funded remittance transaction, will be a unique identifier for the originator or transaction |
| Financial Institution (FI) info | Name and Identifier of the FI | Name and Identifier of the FI (For fiat payouts only) |
*For Travel Rule purposes, information about the originator's fiat account is typically transmitted to beneficiary financial institutions, unless wallets are provisioned for and self-custodied by the originator.
Wallet Risk Categories
| Type of risk | Category | Description |
|---|---|---|
| Behavioral | Binary Tree | Part of a Binary Tree transaction |
| Behavioral | CoinJoin Transactions | Involved in a CoinJoin-like transaction |
| Behavioral | Extortion with Common Destination | Part of a Extortion with Common Destination transaction |
| Behavioral | Graphton | Part of a unique "trail" of transactions |
| Behavioral | Mass Registration | Involved in Mass Registration |
| Behavioral | Peeling Chain | Involved in a Peeling Chain |
| Behavioral | Peeling Chain with Common Destination | Part of a Peeling Chain with Common Destination transaction |
| Behavioral | Web Flow | Part of a Web Flow transaction |
| Counterparty | Adult Content | Address previously transacted with Adult Content |
| Counterparty | Banned or Controlled Substances | Address previously transacted with Banned or Controlled Substances |
| Counterparty | Blocklisted | Address previously transacted with Blocklisted |
| Counterparty | Carding / PII Shop | Address previously transacted with Carding / PII Shop |
| Counterparty | Cash-to-Crypto | Address previously transacted with Cash-to-Crypto |
| Counterparty | Child Sexual Abuse Material (CSAM) | Address previously transacted with Child Sexual Abuse Material (CSAM) |
| Counterparty | Child Sexual Abuse Material (CSAM) Consumer | Address previously transacted with Child Sexual Abuse Material (CSAM) Consumer |
| Counterparty | Child Sexual Abuse Material (CSAM) Scam | Address previously transacted with Child Sexual Abuse Material (CSAM) Scam |
| Counterparty | Child Sexual Abuse Material (CSAM) Vendor | Address previously transacted with Child Sexual Abuse Material (CSAM) Vendor |
| Counterparty | Community Complaint | Address previously transacted with Community Complaint |
| Counterparty | Counterfeit Goods | Address previously transacted with Counterfeit Goods |
| Counterparty | Cybercrime Services | Address previously transacted with Cybercrime Services |
| Counterparty | Darknet Market | Address previously transacted with Darknet Market |
| Counterparty | Decentralized Exchange | Address previously transacted with Decentralized Exchange |
| Counterparty | Decentralized File Sharing Service | Address previously transacted with Decentralized File Sharing Service |
| Counterparty | Decentralized Gambling | Address previously transacted with Decentralized Gambling Service |
| Counterparty | Decentralized Investment Fraud | Address previously transacted with Decentralized Investment Fraud |
| Counterparty | Decentralized Investment Scheme | Address previously transacted with Decentralized Investment Scheme |
| Counterparty | Decentralized Marketplace | Address previously transacted with Decentralized Marketplace |
| Counterparty | Escort Service / Prostitution | Address previously transacted with Escort Service / Prostitution |
| Counterparty | Extortion / Blackmail | Address previously transacted with Extortion / Blackmail |
| Counterparty | Gambling Service | Address previously transacted with Gambling Service |
| Counterparty | Hacked or Exploited Funds | Address previously transacted with Hacked or Exploited Funds |
| Counterparty | High-Risk Exchange | Address previously transacted with High-Risk Exchange |
| Counterparty | Human Trafficking | Address previously transacted with Human Trafficking |
| Counterparty | Illicit Goods and Services | Address previously transacted with Illicit Goods and Services |
| Counterparty | Imposter Site or Service | Address previously transacted with Imposter Site or Service |
| Counterparty | Investment Fraud | Address previously transacted with Investment Fraud |
| Counterparty | Investment Scheme | Address previously transacted with Investment Scheme |
| Counterparty | Known Hacker Group | Address previously transacted with Known Hacker Group |
| Counterparty | Lending Service | Address previously transacted with Lending Service |
| Counterparty | Malware | Address previously transacted with Malware |
| Counterparty | Mining | Address previously transacted with Mining |
| Counterparty | Mixer | Address previously transacted with Mixer |
| Counterparty | Non-Custodial Exchange | Address previously transacted with Non-Custodial Exchange |
| Counterparty | Online Username Reselling | Address previously transacted with Online Username Reselling |
| Counterparty | P2P Crypto Marketplace | Address previously transacted with P2P Crypto Marketplace |
| Counterparty | Piracy | Address previously transacted with Piracy |
| Counterparty | Politically Exposed Person | Address previously transacted with Politically Exposed Person |
| Counterparty | Ponzi Scheme | Address previously transacted with Ponzi Scheme |
| Counterparty | Ransomware | Address previously transacted with Ransomware |
| Counterparty | Sanctions | Address previously transacted with Sanctions |
| Counterparty | Scam | Address previously transacted with Scam |
| Counterparty | Sexual Exploitation | Address previously transacted with Sexual Exploitation |
| Counterparty | Special Measures | Address previously transacted with Special Measures |
| Counterparty | Terrorist Financing | Address previously transacted with Terrorist Financing |
| Counterparty | Trusted Community Complaint | Address associated with Trusted Community Complaint |
| Counterparty | Violent Extremism | Address previously transacted with Violent Extremism |
| Indirect | Adult Content | Address has indirect exposure to Adult Content |
| Indirect | Banned or Controlled Substances | Address has indirect exposure to Banned or Controlled Substances |
| Indirect | Blocklisted | Address has indirect exposure to Blocklisted |
| Indirect | Carding / PII Shop | Address has indirect exposure to Carding / PII Shop |
| Indirect | Cash-to-Crypto | Address has indirect exposure to Cash-to-Crypto |
| Indirect | Child Sexual Abuse Material (CSAM) | Address has indirect exposure to Child Sexual Abuse Material (CSAM) |
| Indirect | Child Sexual Abuse Material (CSAM) Consumer | Address has indirect exposure to Child Sexual Abuse Material (CSAM) Consumer |
| Indirect | Child Sexual Abuse Material (CSAM) Scam | Address has indirect exposure to Child Sexual Abuse Material (CSAM) Scam |
| Indirect | Child Sexual Abuse Material (CSAM) Vendor | Address has indirect exposure to Child Sexual Abuse Material (CSAM) Vendor |
| Indirect | Community Complaint | Address has indirect exposure to Community Complaint |
| Indirect | Counterfeit Goods | Address has indirect exposure to Counterfeit Goods |
| Indirect | Cybercrime Services | Address has indirect exposure to Cybercrime Services |
| Indirect | Darknet Market | Address has indirect exposure to Darknet Market |
| Indirect | Decentralized Exchange | Address has indirect exposure to Decentralized Exchange |
| Indirect | Decentralized File Sharing Service | Address has indirect exposure to Decentralized File Sharing Service |
| Indirect | Decentralized Gambling | Address has indirect exposure to Decentralized Gambling |
| Indirect | Decentralized Investment Fraud | Address has indirect exposure to Decentralized Investment Fraud |
| Indirect | Decentralized Investment Scheme | Address has indirect exposure to Decentralized Investment Scheme |
| Indirect | Decentralized Marketplace | Address has indirect exposure to Decentralized Marketplace |
| Indirect | Escort Service / Prostitution | Address has indirect exposure to Escort Service / Prostitution |
| Indirect | Extortion / Blackmail | Address has indirect exposure to Extortion / Blackmail |
| Indirect | Gambling Service | Address has indirect exposure to Gambling Service |
| Indirect | Hacked or Exploited Funds | Address has indirect exposure to Hacked or Exploited Funds |
| Indirect | High-Risk Exchange | Address has indirect exposure to High-Risk Exchange |
| Indirect | Human Trafficking | Address has indirect exposure to Human Trafficking |
| Indirect | Illicit Goods and Services | Address has indirect exposure to Illicit Goods and Services |
| Indirect | Imposter Site or Service | Address has indirect exposure to Imposter Site or Service |
| Indirect | Investment Fraud | Address has indirect exposure to Investment Fraud |
| Indirect | Investment Scheme | Address has indirect exposure to Investment Scheme |
| Indirect | Known Hacker Group | Address has indirect exposure to Known Hacker Group |
| Indirect | Lending Service | Address has indirect exposure to Lending Service |
| Indirect | Malware | Address has indirect exposure to Malware |
| Indirect | Mining | Address has indirect exposure to Mining |
| Indirect | Mixer | Address has indirect exposure to Mixer |
| Indirect | Non-Custodial Exchange | Address has indirect exposure to Non-Custodial Exchange |
| Indirect | Online Username Reselling | Address has indirect exposure to Online Username Reselling |
| Indirect | P2P Crypto Marketplace | Address has indirect exposure to P2P Crypto Marketplace |
| Indirect | Piracy | Address has indirect exposure to Piracy |
| Indirect | Politically Exposed Person | Address has indirect exposure to Politically Exposed Person |
| Indirect | Ponzi Scheme | Address has indirect exposure to Ponzi Scheme |
| Indirect | Ransomware | Address has indirect exposure to Ransomware |
| Indirect | Sanctions | Address has indirect exposure to Sanctions |
| Indirect | Scam | Address has indirect exposure to Scam |
| Indirect | Sexual Exploitation | Address has indirect exposure to Sexual Exploitation |
| Indirect | Special Measures | Address has indirect exposure to Special Measures |
| Indirect | Terrorist Financing | Address has indirect exposure to Terrorist Financing |
| Indirect | Trusted Community Complaint | Address associated with Trusted Community Complaint |
| Indirect | Violent Extremism | Address has indirect exposure to Violent Extremism |
| Ownership | Adult Content | Address associated with Adult Content |
| Ownership | Banned or Controlled Substances | Address associated with Banned or Controlled Substances |
| Ownership | Blocklisted | Address associated with Blocklisted |
| Ownership | Carding / PII Shop | Address associated with Carding / PII Shop |
| Ownership | Cash-to-Crypto | Address associated with Cash-to-Crypto |
| Ownership | Child Sexual Abuse Material (CSAM) | Address associated with Child Sexual Abuse Material (CSAM) |
| Ownership | Child Sexual Abuse Material (CSAM) Consumer | Address associated with Child Sexual Abuse Material (CSAM) Consumer |
| Ownership | Child Sexual Abuse Material (CSAM) Scam | Address associated with Child Sexual Abuse Material (CSAM) Scam |
| Ownership | Child Sexual Abuse Material (CSAM) Vendor | Address associated with Child Sexual Abuse Material (CSAM) Vendor |
| Ownership | Community Complaint | Address associated with Community Complaint |
| Ownership | Counterfeit Goods | Address associated with Counterfeit Goods |
| Ownership | Cybercrime Services | Address associated with Cybercrime Services |
| Ownership | Darknet Market | Address associated with Darknet Market |
| Ownership | Decentralized Exchange | Address associated with Decentralized Exchange |
| Ownership | Decentralized File Sharing Service | Address associated with Decentralized File Sharing Service |
| Ownership | Decentralized Gambling | Address associated with Decentralized Gambling Service |
| Ownership | Decentralized Investment Fraud | Address associated with Decentralized Investment Fraud |
| Ownership | Decentralized Investment Scheme | Address associated with Decentralized Investment Scheme |
| Ownership | Decentralized Marketplace | Address associated with Decentralized Marketplace |
| Ownership | Escort Service / Prostitution | Address associated with Escort Service / Prostitution |
| Ownership | Extortion / Blackmail | Address associated with Extortion / Blackmail |
| Ownership | Gambling Service | Address associated with Gambling Service |
| Ownership | Hacked or Exploited Funds | Address associated with Hacked or Exploited Funds |
| Ownership | High-Risk Exchange | Address associated with High-Risk Exchange |
| Ownership | Human Trafficking | Address associated with Human Trafficking |
| Ownership | Illicit Goods and Services | Address associated with Illicit Goods and Services |
| Ownership | Imposter Site or Service | Address associated with Imposter Site or Service |
| Ownership | Investment Fraud | Address associated with Investment Fraud |
| Ownership | Investment Scheme | Address associated with Investment Scheme |
| Ownership | Known Hacker Group | Address associated with Known Hacker Group |
| Ownership | Lending Service | Address associated with Lending Service |
| Ownership | Malware | Address associated with Malware |
| Ownership | Mining | Address associated with Mining |
| Ownership | Mixer | Address associated with Mixer |
| Ownership | Non-Custodial Exchange | Address associated with Non-Custodial Exchange |
| Ownership | Online Username Reselling | Address associated with Online Username Reselling |
| Ownership | P2P Crypto Marketplace | Address associated with P2P Crypto Marketplace |
| Ownership | Piracy | Address associated with Piracy |
| Ownership | Politically Exposed Person | Address associated with Politically Exposed Person |
| Ownership | Ponzi Scheme | Address associated with Ponzi Scheme |
| Ownership | Ransomware | Address associated with Ransomware |
| Ownership | Sanctions | Address associated with Sanctions |
| Ownership | Scam | Address associated with Scam |
| Ownership | Sexual Exploitation | Address associated with Sexual Exploitation |
| Ownership | Special Measures | Address associated with Special Measures |
| Ownership | Terrorist Financing | Address associated with Terrorist Financing |
| Ownership | Trusted Community Complaint | Address associated with Trusted Community Complaint |
| Ownership | Violent Extremism | Address associated with Violent Extremism |
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