What is Anti-Money Laundering (AML)?
Anti-Money Laundering (AML) is a set of laws, regulations, and procedures designed to prevent criminals from disguising illegally obtained funds as legitimate income. It is a global effort to combat money laundering and the financing of terrorism. AML is a critical component of the global financial system, as it helps to ensure that financial institutions and other businesses are not used to facilitate criminal activities.
History of Anti-Money Laundering
The concept of money laundering has been around for centuries, but it was not until the 1970s that governments began to take action against it. In 1970, the United States passed the Bank Secrecy Act, which required financial institutions to report suspicious transactions to the government. This was followed by the Money Laundering Control Act of 1986, which made money laundering a federal crime.
Since then, the international community has taken steps to combat money laundering. In 1989, the Financial Action Task Force (FATF) was established to develop and promote international standards for combating money laundering and terrorist financing. The FATF has since developed a set of 40 Recommendations that are widely adopted by countries around the world.
Comparison of Anti-Money Laundering Regulations
| Country | AML Regulations |
|---|---|
| United States | Bank Secrecy Act, Money Laundering Control Act |
| United Kingdom | Proceeds of Crime Act, Money Laundering Regulations |
| European Union | Fourth Anti-Money Laundering Directive |
| Australia | Anti-Money Laundering and Counter-Terrorism Financing Act |
Summary
Anti-Money Laundering (AML) is a set of laws, regulations, and procedures designed to prevent criminals from disguising illegally obtained funds as legitimate income. It is a global effort to combat money laundering and the financing of terrorism. The Financial Action Task Force (FATF) has developed a set of 40 Recommendations that are widely adopted by countries around the world. For more information on AML, visit the FATF website or consult your local financial regulator.
See Also
1. Bank Secrecy Act
2. Money Laundering Control Act
3. Proceeds of Crime Act
4. Money Laundering Regulations
5. Fourth Anti-Money Laundering Directive
6. Anti-Money Laundering and Counter-Terrorism Financing Act
7. Financial Action Task Force
8. Money Laundering
9. Terrorist Financing
10. Financial Crimes Enforcement Network
