Anti-Money Laundering (Aml)
| Anti-Money Laundering (AML) refers to the set of regulations put in place in order to prevent the illegal movement of money around the world. These regulations are designed to stop the flow of money from criminal activities, such as drug trafficking and terrorism. The AML regulations require financial institutions to put in place certain controls, such as customer due diligence measures, in order to reduce the risk of them being used for money laundering. These measures include things like knowing your customer, understanding their financial activities and transactions, and reporting any suspicious activity to the relevant authorities. The global fight against money laundering has been given a boost in recent years by the introduction of the Financial Action Task Force (FATF), an inter-governmental body which sets standards and promotes effective implementation of legal, regulatory and operational measures to combat money laundering. The FATF’s Forty Recommendations on money laundering set out the measures that countries should take to criminalise money laundering and terrorist financing, and to freeze and confiscate the proceeds of these crimes. The Recommendations also cover measures to be taken by financial institutions and other businesses to prevent and detect money laundering. The fight against money laundering is an important part of the wider fight against crime and terrorism. By making it more difficult for criminals to launder money, we can make it more difficult for them to finance their activities and ultimately make the world a safer place. |
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