DHS · DHS-2561 · record R1897

Cryptocurrency Analysis

Department of Homeland Security · CBP

Overview

Development stage: DeployedSource: c) Deployed – The use case is being actively authorized or utilized to support the functions or mission of an agency.
High-impact designation: High-impactSource: a) High-impact
Impact justification: Not reported
Start date: 2025-01-01 (day precision)Source: 2025-01-01T00:00:00
Withheld from public reporting: Not reported

Mission

Topic area: Law Enforcement
Operational functions: No function tag matched Derived by keyword rules; see methodology

Problem the AI is intended to solve

Identification of transactions that may have been made with a designated entity, company, or location that may be using crypto to circumvent financial reporting. This tool will help CBP identify business and travelers who may be using cryptocurrency to conceal illicit transactions not reported within the U.S. financial system.

Expected benefits

Quicker identification of risks related to cryptocurrency accounts to aid in addressing potential admissibility concerns (in lieu of completely manual research of the same accounts).

System outputs

Highlighting transactions (labeling them as at-risk) that may have been made with a designated entity, company, or location that may be using crypto to circumvent financial reporting. Use of dark web marketplaces, illicit funding sites, or other financial activity that would normally be flagged by a bank or other financial institution in accordance with US law.

Technology

AI classification: Classical / predictive MLSource: Classical/Predictive Machine Learning: Models trained on data to make predictions or classifications based on identified patterns or relatio…
System name(s): Not reported
Custom-developed code: No
Public source code: Not reported

Sourcing

How it was built: Purchased from vendorSource: a) Purchased from a vendor
Vendor (as reported): TRM Labs
Vendors (standardized): TRM Labs

A vendor is the supplier named by the agency. It does not identify the underlying model or AI technology.

Data and privacy

Involves PII: No
Privacy Impact Assessment: www.dhs.gov ↗
Authorization to Operate: No
Demographic features: Not reported
Training and evaluation data: Training data was collected from several publicly available, social media, and media outlet sites. This approach ensured the model was trained across several different groups representing an array of possible language types and vernaculars so as not to cause bias toward a specific demographic. Along with the above open-source data, the vendor leverages a mix of proprietary data to ensure the data is representative of real-world conditions and context.
Federal Data Catalog: Not reported

Governance

8 of 8 minimum-practice questions answered. A blank answer means the agency reported nothing; it does not mean the practice is absent.

Pre-deployment testingReported in progressSource: b) In-progress

AI impact assessmentReported in progressSource: b) In-progress

Independent reviewReported in progressSource: d) In-progress

Ongoing monitoringReported in progressSource: b) Development of monitoring protocols is in-progress

Operator trainingReported in progressSource: b) Establishment of sufficient and periodic training is in-progress

Fail-safeReported in progressSource: c) In-progress

Appeal processReported in progressSource: c) Establishment of an appropriate appeal process is in-progress

User and public consultationReported in progressSource: e) In-progress

Potential impacts and how they were identified

Identification of US Government crypto wallets that are being utilized for criminal investigations which are participating in transactions on illicit marketplaces.