What does the acronym AML stand for?

The acronym AML stands for Anti-Money Laundering. This term refers to a set of laws, regulations, and procedures designed to prevent criminals from disguising illegally obtained funds as legitimate income. AML measures are crucial in the financial sector to combat money laundering activities, which can facilitate various forms of crime, including drug trafficking, terrorism, and corruption.

Understanding AML is essential for professionals in finance and banking as they must be able to identify and report suspicious activities that could be related to money laundering. Organizations implement AML programs to comply with legal obligations and to protect themselves from risks associated with financial crime. This is relevant for compliance officers, bank tellers, and financial analysts who need to ensure that their institutions adhere to the regulations designed to thwart illegal financial activities.