Anti-Money Laundering in Crypto

Anti-Money Laundering (AML) is a set of international laws established to combat criminal organizations or individuals laundering money through cryptocurrencies into real money.

What is anti-money laundering?

Anti-Money Laundering (AML) is a set of laws and regulations established to prevent illicit money trafficking around the world. Money laundering refers to the process of concealing the origin of (illegally obtained) funds by passing them through a usually complex sequence of transfers or transactions. These transactions are usually legitimate and therefore will not be noticed, allowing the original owner of the illicit funds to use them for legitimate purposes.

AML targets criminal activities such as illicit trade in goods (drugs, smuggling, etc.), corruption in government agencies, tax evasion, etc. Financial institutions play a significant role in AML/CFT.

If criminals cannot successfully move the proceeds of illegal activities, they will not be interested in committing these crimes. Consequently, financial institutions have an obligation to monitor customer transactions and deposit records, especially when they appear to be larger than usual.
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