Anti-Money Laundering (AML) encompasses a framework of legal regulations and protocols designed to thwart the efforts of individuals who seek to transform unlawfully acquired funds into lawful income. While the particulars can vary, the typical AML procedures consist of three key stages: the introduction of illicit funds into the financial system, the stratification of funds to obscure their source, and the assimilation of these funds into the legitimate economy.
Financial institutions and specific other entities are obligated to institute AML measures. These measures may entail confirming the identities of their clients, vigilant monitoring of transactions for any suspicious behavior, maintaining comprehensive records of financial dealings, and promptly reporting any dubious activity to the relevant authorities.