What is the primary goal of AML?

The primary goal of AML is to prevent the proceeds of criminal activity, such as drug trafficking or terrorism, from being integrated into the legitimate financial system.

Who is required to comply with AML regulations?

Financial institutions (banks, credit unions), casinos, real estate agencies, virtual asset service providers, and certain other businesses deemed susceptible to money laundering are typically required to comply.

What is a Suspicious Activity Report (SAR)?

A SAR is a report filed by a financial institution with a national financial intelligence unit (FIU) when it suspects a transaction or activity may be linked to money laundering or terrorist financing.

Why is AML compliance important for businesses?

Compliance protects businesses from being exploited by criminals, safeguards their reputation, helps avoid significant fines and legal penalties, and contributes to global financial integrity.

What are the common stages of money laundering?

Money laundering typically involves three stages: Placement (introducing illicit funds), Layering (obscuring the origin through complex transactions), and Integration (reintroducing the funds as legitimate assets).