Acronyms Dictionary
AML
Definition
Anti-Money Laundering. A set of laws, regulations, and procedures intended to prevent criminals from disguising illegally obtained funds as legitimate income.
Deep Dive
Anti-Money Laundering (AML) refers to the frameworks used by financial institutions and regulators to detect and report suspicious activity. These laws require companies (especially in fintech and crypto) to verify customer identities (KYC), monitor transactions for red flags, and report large or suspicious movements.
Examples & Use Cases
- 1A cryptocurrency exchange flagging a series of rapid, high-value transfers to a high-risk jurisdiction
- 2A bank requiring detailed documentation for a large international wire transfer
- 3Implementing automated software to scan customer names against global sanctions lists
Related Terms
KYCFinTechCompliance