> For the complete documentation index, see [llms.txt](https://hinkal-team.gitbook.io/hinkal/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://hinkal-team.gitbook.io/hinkal/introduction/compliance.md).

# Compliance

#### Source of Funds Enforcement & Continuous Screening

Hinkal enforces source-of-funds compliance directly at the protocol level through cryptographic guarantees.

Every deposit into Hinkal is assigned a unique depositId, permanently linked to the depositor’s wallet address at the time of deposit.

When a user initiates deposit, private transfer or withdrawal, they must generate a zero-knowledge proof demonstrating that their funds are not associated with any depositId linked to a blacklisted address.

This proof is verified against the current Chainalysis blacklist state, ensuring that compliance checks always reflect the most up-to-date sanctions and risk data.<br>

This creates retroactive protection of the smart contract:

* If a depositor address is flagged after funds have entered Hinkal, those funds immediately become ineligible for private transfers
* The depositor can only withdraw publicly, back to the original address tied to the depositId
* This ensures the resulting transaction flow is fully traceable and auditable

For all non-flagged users, privacy remains fully intact.

The smart contract verifies legitimacy of funds without revealing identity, balances, or transaction history.

As a result, any funds exiting Hinkal’s shielded pool can be treated as pre-verified against the latest compliance standards, providing strong assurances to centralized exchanges, DeFi protocols, and counterparties.

***

#### Continuous Re-Screening via Chainalysis

Hinkal integrates directly with [Chainalysis](chatgpt://generic-entity?number=1) for continuous, real-time re-screening of depositor addresses.

This means:

* Depositor addresses are automatically re-evaluated as new intelligence, sanctions, or risk signals emerge
* No reliance on static “point-in-time” checks at deposit
* Compliance status of funds evolves in sync with global regulatory datasets

***

#### Selective Disclosure

Hinkal uses a viewing key model that allows users to selectively disclose transaction history to auditors, regulators, or counterparties when required.

This includes:

* Full transaction history disclosure
* Granular or partial selective disclosure (specific transactions or time ranges)