Explain about AMl

Question

Explain about AMl

Accepted Answer

AML stands for Anti-Money Laundering, which refers to a set of laws, regulations, and procedures designed to prevent criminals from disguising illegally obtained funds as legitimate income.

AML regulations require financial institutions to verify the identity of their customers and monitor transactions for suspicious activity.
Examples of suspicious activities include large cash deposits, frequent international wire transfers, and transactions involving high-risk countries.
AML compliance helps to detect and report money laundering activities, ultimately protecting the financial system from being used for illegal purposes.