What Is Anti Money Laundering (AML)? This is a system of regulation, laws, and procedures that was created by law enforcement agencies and governments working together to prevent criminals as passing off illegally obtained income as legally obtained income, and even though they are limited in their range or spectrum of transactions their effectiveness is far-reaching in its implications
One example is regulations that are in place for the financial institutions and banks, that allow the opening of depositing accounts or the issue of credit so that certain rules must be followed to ensure no money-laundering can take place using that facility or institution.
THE KEY TAKEAWAYS
- AML deters any criminal activity and their ill-gotten money to be hidden.
- Any criminal uses money-laundering to hide crimes and the amounts of money received from it.
- AML regulations require, that all financial institutions must monitor all customers’ transactions and all or any suspicious transaction be reported through the proper channels ASAP.