Nils Silinevics
Partner · AML & Crypto Compliance · Former FIU Investigator
Kraken's sanctions screening — part of their CDD process — flagged your account. Kraken screens against sanctions lists, PEPs, and watchlists as documented in their AML-CFT page. As a CBI-regulated exchange, Kraken's sanctions compliance operates under EU sanctions frameworks (not just OFAC). This means the regulatory context, available remedies, and escalation paths are different from US-regulated exchanges. We prepare non-association declarations within the EU regulatory framework that governs Kraken.
EU sanctions framework: Kraken is regulated by the CBI under EU AML Directives. EU sanctions screening uses EU consolidated sanctions lists in addition to OFAC and UN lists. The regulatory framework for clearing false positives in the EU is different from the US — and potentially more favorable for individuals, because EU law provides stronger individual rights protections.
PEP screening: Kraken explicitly screens for Politically Exposed Persons as part of CDD. PEP status doesn't disqualify you but triggers enhanced scrutiny. The EU framework defines PEP status more broadly than some jurisdictions — including family members and known associates.
Both — plus UN sanctions. As a CBI-regulated exchange, Kraken's primary obligation is to EU consolidated sanctions lists. But they also screen against OFAC (because they serve US clients through a separate entity) and UN Security Council sanctions. A false positive can originate from any of these lists. We identify which list triggered the flag and prepare the appropriate non-association declaration.
The CBI oversees Kraken's compliance obligations. While the CBI doesn't directly resolve individual sanctions cases, a regulatory complaint about Kraken's handling of a false positive can prompt their compliance team to re-examine the case. EU consumer protection rights provide additional leverage. We use these regulatory tools when appropriate.
Yes. Kraken operates through Payward Europe Solutions Limited and Payward Global Solutions Limited, both regulated by the Central Bank of Ireland. EU users can file complaints with the CBI, which gives us regulatory leverage that doesn't exist with unregulated exchanges. We advise on whether regulatory complaint is appropriate for your specific case.
Yes — Kraken's support chatbot responds to the phrase "I can't withdraw" with information about any active holds on your account. This can tell you if you have a security-based hold (time-limited, with a specific expiry) or a compliance-triggered hold (requires action). Try this first — but if the chatbot confirms a compliance hold, you'll need professional help to resolve it.
Yes — Kraken explicitly screens for PEPs as part of their CDD and EDD programs. Being a PEP (or a family member of a PEP) does not mean your account will be closed, but it triggers Enhanced Due Diligence. You will be asked for Source of Wealth documentation and the origin of your funds. Kraken's published AML-CFT framework describes their PEP screening process openly. We prepare the EDD documentation package tailored to PEP requirements, referencing Kraken's own published criteria.
Yes. False positives are common — your name matches an entry on the OFAC SDN list, EU sanctions list, or a watchlist. Kraken's sanctions screening system flags matches for compliance review. To resolve, we provide additional government ID, proof of residence in a non-sanctioned jurisdiction, proof of employment history, and a sworn declaration of identity. Kraken is more transparent than most exchanges about the screening process — their Compliance Hub documents the criteria. Most false positives resolve within 5-10 business days with proper documentation.
Inherited crypto, accounts under another name, unprovable source of funds — situations other firms decline.
Often triggered alongside sanctions screening match. See how we handle aml compliance review on Kraken.
In-depth guide on OFAC sanctions false positives in crypto — documentation, legal strategy, and timelines.
How anti-money-laundering rules differ across Germany, UK, Switzerland, France, and more.
Tell us your nationality, what Kraken flagged, and any sanctions screening details. We respond within 6 hours.