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.
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What Is Anti-Money Laundering (AML)?
About Lesson
Know Your Customer (KYC) checks are an obligation for financial institutions and service providers as part of AML laws. KYC requires a user to submit personal information verifying their identity. This process creates accountability for any financial transactions made by the user. KYC is a proactive part of AML and falls under customer due diligence. This contrasts with other AML practices that reactively investigate suspicious behavior.
Exercise Files
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