# Compliance

Zaïffer implements a multi-layered compliance framework to ensure responsible operation while maintaining user privacy. The protocol screens all addresses that interact with the system through both on-chain and off-chain mechanisms.

## **On-Chain Sanctions Screening**

The protocol automatically blocks addresses on the Office of Foreign Assets Control (OFAC) sanctions list from interacting with Zaïffer contracts. This enforcement happens directly on-chain through the integrated SanctionsList contract, ensuring immediate and transparent compliance with regulatory requirements.

More info on [Chainalysis Oracle](https://go.chainalysis.com/chainalysis-oracle-docs.html).

Additionally, protocol administrators can add addresses to the on-chain restrictions as needed to maintain platform integrity and meet evolving compliance obligations.

## **Off-Chain Transaction Monitoring**

Zaïffer integrates with [Chainalysis Know Your Transaction](https://www.chainalysis.com/product/kyt/) (KYT) services to monitor and index all protocol interactions off-chain. This provides comprehensive transaction analysis while keeping sensitive balance information encrypted on-chain, striking a balance between regulatory compliance and user privacy.


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