AML (Anti-money laundering)

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AML refers to laws and regulations designed to prevent criminals from disguising illegally obtained money as legitimate income. What is AML? It is a set of policies that financial institutions and businesses follow to detect and report suspicious activities, such as fraud, tax evasion, and terrorist financing. AML meaning includes customer verification, transaction monitoring, and reporting obligations to regulatory authorities.

In the blockchain and cryptocurrency industry, AML compliance helps prevent illicit activities by requiring exchanges and financial services to follow Know Your Customer (KYC) procedures, track transactions, and flag unusual behavior. Since cryptocurrencies allow for fast, cross-border transfers, strong anti-money laundering measures are essential to prevent misuse. Non-compliance can result in fines, legal action, and loss of operating licenses.

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