what is aml and risk that client bring

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AML stands for Anti-Money Laundering and refers to the measures taken by financial institutions to prevent and detect money laundering activities. Risk that clients bring includes the potential for involvement in illegal activities or financial fraud.

AML involves implementing policies and procedures to identify and report suspicious activities that may be related to money laundering or terrorist financing.
Clients may pose a risk if they engage in large, frequent, or unusual transactions that are inconsistent with their known financial profile.
Financial institutions must conduct due diligence on clients to assess their risk level and monitor their transactions for any signs of money laundering or other illicit activities.
Examples of high-risk clients include politically exposed persons (PEPs), individuals from high-risk jurisdictions, and those involved in cash-intensive businesses.
Failure to comply with AML regulations can result in severe penalties for financial institutions, including fines and reputational damage.

what is aml and risk that client bring

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