Anti-Money Laundering
Anti-Money Laundering (AML) refers to regulations and processes designed to prevent illicit funds from being disguised as legitimate money. Criminals often engage in money laundering to make illegally obtained money appear legitimate. AML measures, implemented by banks and financial institutions, include monitoring transactions, reporting suspicious activities, and verifying customers' identities. By enforcing these rules, authorities aim to detect and deter financial crimes, ensuring that the financial system is not used for illegal activities, such as drug trafficking or fraud, thereby promoting integrity and transparency in the economy.
Additional Insights
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Anti-money laundering (AML) refers to the laws, regulations, and procedures designed to prevent the process of concealing the origins of illegally obtained money. Essentially, it helps stop criminals from making "dirty" money look "clean" by disguising it through financial transactions. Businesses, especially in finance, are required to monitor customer activity, report suspicious transactions, and comply with regulations to detect and prevent money laundering. By doing so, AML efforts aim to uphold the integrity of the financial system and combat crime, terrorism, and corruption.