anti-money laundering (AML) policies

Anti-money laundering (AML) policies are regulations and procedures designed to prevent criminals from disguising illegally obtained money as legitimate. Financial institutions are required to verify customer identities, monitor transactions for suspicious activity, and report large or unusual transactions to authorities. The goal is to detect and deter activities like drug trafficking, corruption, or fraud that generate illicit funds. AML policies help maintain the integrity of the financial system, ensuring that it’s not used to support criminal enterprises while fostering trust and stability in financial operations.