Anti-Money Laundering

Anti-Money Laundering (AML) refers to a set of regulations, policies, and procedures designed to detect and prevent the illegal practice of money laundering. Money laundering involves disguising the origins of illegally obtained funds, making them appear legitimate. Financial institutions, including banks and other entities involved in monetary transactions, implement AML measures to safeguard their systems and comply with legal requirements.

AML processes typically include customer due diligence, transaction monitoring, and reporting suspicious activities to regulatory authorities. Robust AML frameworks are essential for mitigating the risk of financial institutions being unwittingly involved in money laundering activities.

Compliance with AML regulations not only helps in preventing criminal activities but also contributes to maintaining the integrity and stability of the global financial system. Governments and international organizations collaborate to establish and update AML standards, reflecting the evolving nature of financial crimes and the need for a unified approach to combating them.