GlossaryIntermediate
Anti-Money Laundering
Regulatory requirements and practices designed to detect and prevent illicit financial activity.
Anti-Money Laundering (AML) refers to laws, regulations, and internal platform practices designed to detect and prevent illicit funds from being disguised as legitimate through the financial system, including crypto platforms.
AML obligations commonly include monitoring for suspicious transaction patterns and, often paired with KYC, verifying user identity.
Examples
- A regulated exchange's AML program might flag unusually structured transaction patterns for review.
- AML and KYC requirements are commonly implemented together at regulated crypto platforms.