Overview
Anti-money laundering (AML) refers to rules and practices designed to prevent money laundering through financial systems. Crypto platforms are increasingly subject to AML duties. AML compliance is a legal requirement in most jurisdictions.
How It Works
Platforms screen users and transactions, report suspicious activity, and keep records. AML programs align with KYC and sanctions screening. Regulators enforce these duties.
Why It Matters
AML compliance lets crypto platforms access the traditional financial system. It also imposes privacy trade-offs. It is a major factor in platform design and user experience.
Related Concepts
AML relates to KYC, Compliance, and Sanctions. It is a Legal requirement for Crypto platforms.