Hazel's Compliance Suite
Built for regulated financial institutions, Hazel’s compliance framework combines automated controls, real-time monitoring, and protocol-level enforcement to support secure, transparent, and bank-grade digital asset operations.
Security & Controls
Permissioned Wallet Architecture
Every wallet on the Hazel network is pre-approved before it can transact. Participation is permissioned even though the underlying blockchain is public. Only verified custodial participants and approved wallets operate within the Hazel perimeter — meaning your bank controls who moves money on your rails.
Wallet-level KYC/KYB verification required before activation
Permissioned participation on public blockchain infrastructure
Smart contracts enforce spend controls and transaction rules
Wallets can be frozen or blocked by the compliance engine in real time
Reliable Compliance Built-In
We built Hazel with compliance already in place, including real-time AML and OFAC checks, clear audit trails, and operational runbooks so your team can adopt tokenized payments without disrupting existing controls.
Integrated screening logic
Payments route through AML/OFAC checks before settlement
Audit-ready data capture
Structured transaction logs aligned to your examination needs
Process-aligned runbooks
Mapped to your existing BSA compliance procedures
Security & Compliance Partners
Privacy & Data Collection
Hazel handles payment data with the same standards your institution applies to core banking operations. Data flows are documented, access is controlled, and every transaction produces a structured audit trail that aligns to your books and records.
On-Chain Data & Audit Trails
Every tokenized transaction is recorded on the Hazel blockchain network as an immutable proof of settlement. Token movements, wallet activity, and balance changes are captured in real time and exportable for reconciliation, regulatory reporting, and internal audit.
Immutable on-chain transaction records
Real-time exportable reconciliation data
Full traceability from DDA to TDA to settlement
Aligned to bank books and records at every step
Data Access & Permissioning
Access to Hazel platform data is role-based and institution-controlled. Your compliance, operations, and treasury teams each see what they need — and nothing more. Data sharing with third parties follows documented contractual and regulatory standards.
Role-based access controls
Configured per team function
Third-party data governance
Documented TPRM standards for all vendors
Regulatory alignment
Reporting structures built for state and federal examiners
Hazel Network Compliance Services
Service Type | Frequency | Regulator | Description |
|---|---|---|---|
BSA/AML Regulatory Requirements | Continuous - As Required | FinCEN | Suspicious activity and currency transaction reporting aligned to BSA obligations |
OFAC Sanctions Screening | Per Transaction | OFAC - Treasury | Real-time screening of all wallets and transactions against sanctions watch lists |
Blockchain Monitoring and Analysis | Continuous | State - Federal Examiners | Immutable on-chain smart contract of all tokenized movements screened for risk prior to issuance and available for examination |
Travel Rule Compliance | Per Transaction | FinCEN | Counterparty data transmitted with qualifying transfers per BSA Travel Rule requirements |
Issues Management | As Needed | Internal - Regulator | Internal communication platform enables Hazel network banks to share information and resolve or escalate issues securely. |
Interoperability & Standards
Hazel connects to both blockchain networks and traditional fiat rails from a single platform. Your bank does not choose between the old system and the new one — Hazel operates across both simultaneously. Using a permissioned public blockchain enables your financial institution to access millions of developers, pre-built technologies, and a vast ecosystem of consulting and audit companies.
Core API
Hazel's API layer provides documented endpoints for account management, payment initiation, token operations, compliance queries, and reporting. Institutions with less technical infrastructure can use file-based connectors as an alternative path.
Initiate a tokenized deposit transfer between two member bank accounts. Triggers token minting, blockchain proof recording, and settlement routing in a single atomic operation.
Send a Custodia-issued stablecoin to an out-of-network counterparty. Includes AML/OFAC pre-screening, wallet validation, and real-time settlement confirmation.
Retrieve the current status of any in-flight or completed transaction, including token state, settlement confirmation, compliance flags, and audit trail reference.
ISO Support
Hazel's payment messaging is built to align with ISO 20022 standards, the global format increasingly required across FedNow, SWIFT, and cross-border rails. This ensures interoperability across traditional fiat networks and emerging digital asset infrastructure without translation layers.
ISO 20022-aligned payment messaging
FedNow, Fedwire, ACH, and SWIFT connectivity
Ethereum and Solana* blockchain network support
Technical Standards for Ethereum Blockchain: ERC-20 tokens, OpenZepplin contracts, and proxy smart contracts for upgradeability.
Layer 2 and emerging network compatibility
Rail Connectors
Hazel connects to FedNow, Fedwire, ACH, and Ethereum on the fiat side, and to Solana* and Lightning* Network on the blockchain side. All rail connections are managed by Hazel — your bank interfaces through a single platform.
*Roadmap Items
SDK & Developer Tools
Sandbox access, full API documentation, and implementation support are available to all member institutions. Integration timelines range from 1 week (Essentials) to 14+ weeks (Full Control/Enterprise).
Operational Resiliance
Hazel is designed to operate continuously. Blockchain-based settlement removes the cut-off windows and batch processing delays of legacy rails, and Hazel's architecture is built with the redundancy and incident response standards your examiners expect.
Infrastructure Resilience
Hazel is engineered for continuous operation with resilient cloud infrastructure, institutional controls, and distributed settlement architecture. The platform is designed with multi-zone redundancy across AWS environments to support high availability, operational continuity, and rapid recovery in the event of infrastructure disruption.
Every transfer is validated across multiple systems before settlement, helping ensure integrity, consistency, and uninterrupted network operations.
Real-Time Settlement Controls
Hazel validates every transaction through layered compliance checks, reserve verification, and smart contract enforcement before settlement occurs. Automated controls continuously monitor network activity in real time to reduce operational risk and strengthen transaction integrity.
The network is built to support near real-time settlement while maintaining the oversight, auditability, and safeguards financial institutions require.
Incident Response & Cybersecurity
Hazel maintains a security-first operational framework built around institutional cybersecurity standards, layered access controls, and continuous monitoring. The platform undergoes ongoing security assessments, independent smart contract audits, and operational reviews designed to support resilient, secure network operations.
Role-based permissions, dual-control approval processes, and protocol-level safeguards help protect critical infrastructure while maintaining operational continuity across the network.
Operational Visibility
Every movement on the Hazel network is recorded with real-time visibility across settlement activity, wallet positions, and transaction history. Member banks receive reporting designed to support reconciliation, operational oversight, and audit verification across both on-chain and off-chain activity.
Because settlement activity is recorded on blockchain infrastructure, key transaction and reserve data can be independently verified outside of Hazel through immutable on-chain proofs and audit trails.
Smart Contract Governance
Smart contracts deployed on Hazel undergo independent review and structured governance procedures before production deployment. Role-based permissions, controlled upgrade paths, and documented approval workflows help ensure operational integrity across the network.
Protocol-level controls are designed to support secure settlement operations while maintaining transparency, auditability, and institutional oversight.
“We think the biggest use cases that most banks will go out the gate with, and should go out the gate with, is your own money flows.”
BSA/AML & Sanctions Enablement
Hazel embeds Bank Secrecy Act and sanctions compliance at the transaction level. Every wallet is verified. Every payment is screened. Your institution's BSA officer retains oversight and reporting control throughout.
Real-Time Transaction Screening
Every payment processed through Hazel is screened against OFAC sanctions lists and monitored for suspicious activity patterns in real time — before settlement, not after. Flagged transactions are held for review and cannot settle until cleared.
OFAC sanctions screening on every transaction
Blockchain analytics for wallet risk scoring
Automatic hold and review workflow for flagged payments
Audit trail captured at point of screening
Travel Rule & Counterparty Complaince
Hazel supports BSA Travel Rule requirements for qualifying transfers, transmitting counterparty data alongside payments. KYC and KYB verification is completed before any wallet is activated, ensuring your institution only transacts with identified participants.
Travel Rule compliance for qualifying transfers
KYC/KYB verification required at wallet onboarding
Enhanced due diligence (EDD) workflows available
Counterparty identity data retained and accessible for examination
BSA Officer Controls & Reporting
Your institution's BSA officer maintains full visibility into Hazel network activity. Reporting extracts, suspicious activity workflows, and currency transaction data are available through the console and exportable in formats aligned to FinCEN requirements.
Exportable SAR and CTR support data
Role-based access for BSA officer oversight
Configurable alert thresholds and disposition workflows
Documentation aligned to FFIEC examination standards
Transaction Compliance Flow
