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Anti Money Laundering

Anti Money Laundering (AML) incorporates approaches, laws, and guidelines to prevent financial crime. AML is an overall term to stop illegal financial activities. Not following these regulations could be easy however there are unforeseen circumstances that will haunt you if you don’t! Complying with these regulations could be a complex procedure for most companies. Companies have AML compliance departments that ensure AML procedures are carried out.

What is Money Laundering? To actually begin to understand what AML procedures and compliance, you’ll first need to know what money laundering is. Money Laundering is a major crime in every country in the world. Money Laundering is the legalisation of illegally obtained proceeds. There are multiple ways you can launder your money and the methods are increasing with the exponential expansion of technology and the introduction of cryptocurrency. .

What is the Objective of Anti Money Laundering?

AML enforced into our society to prevent criminals from feeding their illegally obtained funds into our financial system. Criminals use Money Laundering as a decoy to hide their true source of income that is earned from crime.

AML in Financial institutions

Financial institutions control the flow of where money goes in the world, they also play a pivotal role in the world of financial crime, it is important that they are properly trained on how to identify and handle money laundering. Almost every bank employee receives training in anti-money laundering, and all of them are required to report any suspicious activity.

In summary AML procedures are to prevent criminals from pumping the illicitly obtained funds from entering our financial system. Although AML is unable to stop all criminals from money laundering, it still gives them a very hard time to do so. This is where KYB Due Diligence comes in handy!