What are Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations?

Question

Accepted Answer

AML and KYC regulations are measures implemented by financial institutions to prevent money laundering and terrorist financing.

AML regulations require financial institutions to monitor and report suspicious activities that could be related to money laundering or terrorist financing.
KYC regulations require financial institutions to verify the identity of their customers to prevent fraud and financial crimes.
Examples of KYC measures include verifying customer identities through government-issued IDs, proof of address, and other documentation.
Examples of AML measures include monitoring transactions for unusual patterns, conducting customer due diligence, and reporting suspicious activities to regulatory authorities.

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