AML (anti-money-laundering)
AMLanti-money laundering
A body of law and procedure obliging financial institutions to detect and report suspicious activity.
Stablecoin issuers operating in regulated jurisdictions are subject to AML obligations including transaction monitoring, KYC (know-your-customer), suspicious activity reports (SARs), and sanctions screening. The FATF (Financial Action Task Force) sets global standards; in the US, FinCEN enforces.
Related terms
- KYC (know-your-customer)The customer-identification programme regulated financial institutions run before opening accounts or processing transactions.
- FATF (Financial Action Task Force)The intergovernmental body that sets global AML / CFT standards — its recommendations are adopted into national law.
- FinCENA bureau of the US Treasury enforcing AML / BSA obligations on financial institutions including most stablecoin issuers.
- Travel RuleA FATF rule requiring VASPs to share originator + beneficiary information for transfers over a threshold (~$1,000).