AML or Anti-Money Laundering refers to a set of procedures, laws or regulations designed to stop the practice of generating income through illegal activities. ‘Money laundering’ is the process in which criminals undertake a series of steps that make it look like money made from illegal or unethical activities were earned legitimately and can enter the traditional banking system. Most anti-money laundering programs focus on the source of funds as opposed to anti-terrorism and similar programs which focus on the destination of funds. In modern finance, a typical anti-money laundering program would be run by the financial institutions to analyze customer data and detect suspicious transactions.
