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  1. Home
  2. /Glossary
  3. /Anti-Money Laundering (AML)
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traditional-finance

Anti-Money Laundering (AML)

Laws and procedures designed to prevent criminals from disguising illegal funds as legitimate income.

Definition

Laws and procedures designed to prevent criminals from disguising illegal funds as legitimate income. Crypto exchanges must implement AML checks like transaction monitoring, suspicious activity reports, and customer verification. Breaking AML rules can result in massive fines or criminal charges.

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Learn More About Anti-Money Laundering (AML)

GuideCrypto Regulation Guide

Related Terms

KYC (Know Your Customer)

Identity verification required by regulated financial services.

Travel Rule

A FATF regulation requiring financial institutions to share sender and receiver information for transactions above a certain threshold.

Compliance

Following the laws and regulations that apply to financial activities, including crypto.

Accredited Investor

Someone who meets specific income or net worth thresholds set by regulators, qualifying them for investments not available to the general public.

Asset Allocation

How you divide your investments across different asset classes like stocks, bonds, crypto, and cash.

Blue Chip

A well-established, financially sound company or crypto project with a proven track record.

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