AML
Anti-Money Laundering
Definition
The set of laws, regulations, and procedures designed to prevent criminals from disguising illegally obtained funds as legitimate income. AML frameworks require financial institutions to implement controls including customer identification, transaction monitoring, and suspicious activity reporting.
Regulatory Context
AML requirements are rooted in the FATF Recommendations and implemented through regional legislation such as the EU Anti-Money Laundering Directives and the US Bank Secrecy Act. Regulators worldwide conduct supervisory assessments of firms' AML programmes.