Anti-Money Laundering (AML)

Anti-Money Laundering (AML) refers to a set of regulations, laws, and procedures designed to prevent illicitly obtained money from being disguised as legitimate funds. It is an essential part of the global efforts to combat financial crimes, such as terrorism financing, drug trafficking, corruption, and other illegal activities. The purpose of AML measures is to detect, deter, and report any suspicious financial activities that may involve money laundering.

AML focuses on various aspects of financial transactions, including customer due diligence and know-your-customer guidelines, transaction monitoring and reporting, risk assessment, and the adoption of internal policies and controls within financial institutions. This includes verifying the identity of customers, monitoring and analyzing transactions for anomalies, implementing reporting mechanisms, and maintaining comprehensive records to trace the source and movement of funds. Compliance with AML regulations is mandatory for banks, financial institutions, and other designated entities, with severe penalties for non-compliance. Through AML measures, authorities aim to safeguard the integrity of the financial system, protect against illicit financial flows, and contribute to the overall stability and security of the economy.