AML (Anti-Money Laundering)


Anti-Money Laundering (AML) refers to a set of laws, regulations, and procedures designed to prevent individuals and entities from hiding illegally obtained funds as legitimate income. AML measures include requiring financial institutions to monitor customers' transactions, report large cash dealings, and take steps to identify and prevent suspicious activities.


AML regulations are critical for maintaining the integrity of the global financial system. Financial institutions, including banks and broker-dealers, are required to implement AML programs to detect and report potentially illicit activities, such as money laundering and terrorism financing. These regulations are implemented by national and international bodies, such as the Financial Action Task Force (FATF), and require institutions to perform customer due diligence (CDD), keep records, and report suspicious activities to relevant authorities. Compliance with AML standards helps prevent financial crimes and contributes to the overall security of the financial system.