AML
AML, which stands for Anti-Money Laundering, encompasses a set of laws and regulations designed to prevent the concealment of unlawfully acquired funds. It tackles financial crimes like fraud, corruption, and terrorism financing.
Financial institutions are obligated to implement measures such as identifying suspicious transactions, conducting due diligence, and keeping records. AML regulations differ by country but generally adhere to international standards. These efforts involve monitoring transactions, assessing risks, and sharing information to disrupt money laundering activities.
Regarding crypto world, many jurisdictions have extended AML regulations to cover cryptocurrency exchanges and other virtual asset service providers. These regulations require crypto businesses to implement customer due diligence procedures, conduct transaction monitoring, and report suspicious activities to the appropriate authorities.
Crypto exchanges and platforms are expected to verify the identities of their customers, implement know-your-customer (KYC) procedures, and maintain records of transactions.