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 (see Kaavon's "Know Your Customer" glossary definition), verifying user identity. See also Kaavon's "Combating the Financing of Terrorism" and "Travel Rule" glossary definitions for two specific, related compliance categories.
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.
Learn more
Sanctions Screening in DeFi: How Protocols Actually Comply
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How to Choose a Crypto Exchange
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Travel Rule
Read the Travel Rule glossary definition
Combating the Financing of Terrorism
Read the Combating the Financing of Terrorism glossary definition
The Crypto Travel Rule: What FATF Actually Requires
Read the article
What Is a Crypto Licence? VASP Registration vs. CASP Authorisation, Explained
Read the full guide