Anti‑Money Laundering (AML)
Also known as: AML compliance, anti-money laundering
Regulations and procedures to prevent the use of financial systems—including blockchain—for money laundering.
Anti‑Money Laundering (AML) refers to the suite of laws, regulations, and practices designed to detect and prevent illicit financial activities, such as money laundering and terrorist financing. In the blockchain and crypto space, AML policies require exchanges, custodians, and DeFi protocols to conduct KYC (Know Your Customer), monitor suspicious transactions, and report large or unusual transfers. Regulatory frameworks like the FATF Travel Rule apply to virtual asset service providers to ensure compliance and enhance transparency.