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AML
(Anti-Money Laundering)
AML refers to laws, regulations and procedures intended to prevent criminals from disguising illegally obtained funds as legitimate income. Global AML compliance costs exceed $200 billion annually as financial institutions implement systems to detect suspicious activity.
Key AML requirements include KYC verification, transaction monitoring (reporting cash transactions over $10,000), and suspicious activity reports (SARs). The FinCEN files leak revealed gaps in AML enforcement, with only 1-2% of illicit funds being seized. Cryptocurrency presents new AML challenges, leading to "travel rule" regulations requiring VASPs to share sender/receiver info for transfers over $3,000. Non-compliance fines can reach $25 million or 4% of global revenue.
Key AML requirements include KYC verification, transaction monitoring (reporting cash transactions over $10,000), and suspicious activity reports (SARs). The FinCEN files leak revealed gaps in AML enforcement, with only 1-2% of illicit funds being seized. Cryptocurrency presents new AML challenges, leading to "travel rule" regulations requiring VASPs to share sender/receiver info for transfers over $3,000. Non-compliance fines can reach $25 million or 4% of global revenue.