Anti money laundering

• Anti-Money Laundering (AML) encompasses a set of laws, regulations, and procedures designed to combat and prevent the illegal conversion of money obtained from criminal activities into legitimate funds within the financial system. Here's a bit more detail:

  • Legal Framework: AML laws are typically enacted at the national level and may also be supplemented by international agreements and standards. These laws mandate that financial institutions and certain other entities implement measures to detect and prevent money laundering activities.

  • Law Enforcement: A key aspect of AML involves law enforcement agencies actively investigating and prosecuting individuals or entities engaged in money laundering activities. This may involve collaboration between domestic and international law enforcement agencies.

  • Processes and Procedures: Financial institutions and designated non-financial businesses and professions (DNFBPs) are required to establish and maintain robust AML processes and procedures. These include customer due diligence, transaction monitoring, and reporting suspicious activities to the appropriate authorities.

  • Regulatory Oversight: AML regulations are overseen and enforced by regulatory authorities such as financial regulatory agencies or specialized AML agencies. These authorities set standards, conduct examinations, and impose penalties for non-compliance with AML requirements. By implementing AML measures, countries aim to safeguard the integrity of the financial system, protect against the financing of terrorism, and disrupt criminal activities associated with money laundering.