Anti-Money Laundering AML

**Anti-Money Laundering (AML)** is the international legal framework that obliges financial institutions and certain non-financial businesses to identify their customers, monitor transactions, report suspicious activity, and keep records. Designated non-financial businesses and professions (DNFBPs) include real estate agents, lawyers, accountants, dealers in precious metals, casinos, and virtual asset service providers.\n\nThe global standard-setter is the Financial Action Task Force (FATF), whose 40 Recommendations are the universal benchmark. National regimes implement those recommendations: the Bank Secrecy Act and USA PATRIOT Act in the United States, the AML Directives plus the new AML Regulation (Regulation 2024/1624) and AML Authority Regulation (Regulation 2024/1620) in the EU, the Money Laundering Regulations 2017 in the UK, and the Proceeds of Crime Act regimes in Commonwealth jurisdictions.\n\nAML obligations sit on top of three pillars: a risk-based approach with controls scaled to assessed risk, customer due diligence (KYC), and transaction monitoring with Suspicious Activity Reporting. Non-compliance carries criminal liability for officers, multi-million-dollar civil penalties, and licence revocation.

You will encounter AML obligations as a regulated entity (bank, EMI, payment institution, crypto provider, gatekeeper profession), and as a customer of those entities through KYC requests, source-of-funds questions, and transaction holds when patterns trip a monitoring rule. Multinational groups need consolidated AML programs that handle jurisdictional differences.