Understanding Anti-Money Laundering (AML): Protecting Our Financial Systems
Money laundering is a global financial crime that enables criminals to disguise the origins of illicit funds and make them appear legitimate. To combat this threat, the international community has established stringent regulations and practices known as Anti-Money Laundering (AML) measures. AML is a critical component of safeguarding the integrity of our financial systems and preventing them from being exploited for illegal activities. AML measures primarily aim to detect and prevent money laundering by tracking the movement of funds and identifying suspicious transactions. Key aspects of AML include: Customer Due Diligence (CDD): Financial institutions are required to verify the identity of their customers, assessing their risk profile, and monitoring transactions. This helps ensure that funds come from legitimate sources. Suspicious Activity Reporting: Institutions are obligated to report any unusual or potentially illicit activities to relevant authorities. These reports ini...