Anti-Money Laundering (AML)

Definition

The body of laws, regulations, and procedures designed to prevent criminals from disguising illegally obtained funds as legitimate income. AML compliance requires financial institutions to implement customer due diligence, transaction monitoring, suspicious activity reporting, and record-keeping. Key legislation includes the EU Anti-Money Laundering Directives, the UK Proceeds of Crime Act 2002, and the US Bank Secrecy Act.