AML (Anti-Money Laundering)

Definition

THEAML, or Anti-Money Laundering (in French Fight against money laundering), refers to all regulations, policies and procedures put in place to prevent, detect, and combat money laundering. The fight against money laundering aims to protect the integrity of the financial system by preventing the use of illicit funds derived from criminal activities, such as corruption, drug trafficking or tax evasion.

The key measures of AML

• Identification of customers and businesses: Financial institutions should apply audit procedures, such as the KYC (Know Your Customer), which consists of verifying the identity of individual customers, and the KYB (Know Your Business), which is used to identify businesses and understand their structure, activities, and beneficial owners.
• Transaction monitoring: Banks and other financial entities monitor suspicious transactions, such as large transfers or unusual transactions.
• Statement of Suspicion: Any suspicious activity should be reported to the appropriate authorities, often through reports of suspicion.

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