AML

AML, or anti-money laundering, refers to the laws, regulations, and internal controls designed to stop criminals from disguising illegally obtained funds as legitimate. In the crypto sector, exchanges and other service providers implement AML programs that include customer identity verification, transaction monitoring, record-keeping, and reporting of suspicious activity to authorities. These measures aim to make the financial system harder to abuse.

A common misconception is that AML and KYC are the same thing; KYC identity checks are one component of a wider AML framework. Specific obligations differ across jurisdictions and continue to evolve as regulators address digital assets.