Glossary

Banking

AML

Also known as Anti-Money Laundering

AML, or Anti-Money Laundering, is the framework of laws and controls requiring financial institutions to detect and report attempts to disguise the origins of illegally obtained funds. AML obligations drive account monitoring, transaction reporting and customer due diligence.

In plain terms: The rules that make banks watch transactions and ask awkward questions.

Why it matters

Explains behaviour that otherwise seems arbitrary: why a sudden volume increase triggers a review, why round-number transfers attract attention, and why an institution sometimes cannot tell you why an account was closed.

Read the full guideUS business banking

Related terms