What does AML stand for?

Anti-Money Laundering (AML) refers to a set of laws, regulations, and procedures designed to prevent the generation of income through criminal activities, and it aims to stop money laundering practices that can facilitate further crimes, including drug trafficking and fraud. Understanding AML is crucial for financial institutions and other entities that handle monetary transactions, as they must adhere to these regulations to detect and report suspicious activities.

The term encompasses a variety of measures that organizations can implement to combat illicit financial activities, including customer due diligence, transaction monitoring, and reporting suspicious transactions to the relevant authorities. The designation of AML helps to encapsulate the broader goal of protecting the financial system from being exploited by criminals seeking to hide the origins of illegal funds.