Course Content
What Is Anti-Money Laundering (AML)?
AML regulations attempt to stop the illegal laundering of illicit funds. Individual governments and multinational organizations like the FATF legislate against money laundering activities. Money laundering takes “dirty” money and turns it into clean money. This can be done by disguising the origins of the funds, mixing them with legitimate transactions, or investing them into legal assets. Crypto is an attractive way to launder money due to its privacy, difficulty in retrieving funds, and underdeveloped legislation. Large-scale seizures of crypto show criminals regularly use it to launder huge sums. Binance and many other crypto exchanges track suspicious behavior as part of their AML compliance and report it to law enforcement.
0/11
What Is Anti-Money Laundering (AML)?
About Lesson

Money laundering is when criminals make illegal funds appear as legitimate money, investments, or financial assets. The proceeds come from crimes such as drug trafficking, terrorism, and fraud. Laws and regulations combating money laundering differ by country. However, increasing alignment on rules is a goal of many jurisdictions and the FATF.

There are three stages to laundering money:

  • Placement: Introducing “dirty” money into the financial system, such as with a cash-based business.
  • Layering: Moving illegal funds around to make the tracking of them difficult. Using crypto is one way to hide the origin of “dirty” money.
  • Integration: Using legal investments and other financial channels to reintroduce the “dirty” money into the economy.
Exercise Files
No Attachment Found
No Attachment Found