Anti-Money Laundering

(AML)

A set of laws and procedures designed to detect and prevent the movement of funds linked to criminal activity.

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What is Anti-Money Laundering?

Anti-Money Laundering, or AML, is the set of laws and procedures that financial businesses follow to detect and prevent the movement of funds linked to crime. It aims to stop illegal money entering the financial system.

How it works in crypto

For crypto platforms, AML usually means verifying customer identities, monitoring transactions for unusual patterns, and reporting suspicious activity to the relevant authorities. These controls are legal obligations rather than optional extras.

Where it fits

AML sits alongside Know Your Customer checks and sanctions screening as part of a platform’s wider compliance programme.

Related terms

Limiting withdrawals to a pre-approved list of addresses.

A digital form of a country’s official currency issued by its central bank.

A string of letters and numbers that shows where crypto can be sent on a blockchain, similar to an account number.

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