Explore commonly used personal finance terms.
Anti-Money Laundering (AML) encompasses policies, laws, and regulations implemented to prevent criminals from disguising illegally obtained money as legitimate income. Financial institutions are required to adhere to AML procedures, which include identifying clients, monitoring transactions, and reporting suspicious activities to authorities. AML efforts aim to curb financial crime and ensure that financial systems are not exploited by criminal organizations. Compliance with AML regulations is essential to maintain integrity in the financial industry.
