What is aml in banking

Question

Accepted Answer

AML stands for Anti-Money Laundering. It is a set of laws, regulations, and procedures designed to prevent illegal financial activities.

AML is a regulatory requirement for banks to prevent money laundering and terrorist financing.
Banks must verify the identity of their customers and monitor their transactions for suspicious activities.
AML programs include risk assessments, employee training, and reporting suspicious activities to authorities.
Failure to comply with AML regulations can result in significant fines and reputational damage.
Examples of suspicious activities include large cash deposits, frequent international transfers, and transactions involving high-risk countries.

Accepted Answer

AML in banking involves verifying the identity of your banking customers, checking that they do not appear on PEP or sanctions lists, and monitoring transactions over a certain threshold. That's why banking uses KYC (know your customer) proces.

What is aml in banking

Popular interview questions of Banking Operations

Top HR questions asked in ICICI Bank Banking Operations