Anti-Money Laundering (AML) Glossary Definition

Anti-money-laundering refers to a set of procedures, laws and regulations designed to stop the practice of generating income through illegal actions. Though anti-money-laundering laws cover a relatively limited number of transactions and criminal behaviors, their implications are far-reaching. For example, AML regulations require institutions issuing credit or allowing customers to open accounts to complete due-diligence procedures to ensure they are not aiding in money-laundering activities. The onus to perform these procedures is on the institutions, not on the criminals or the government.

See also: AML.

In security and compliance work, this term helps teams describe controls, risks, identity practices, standards, audits, or protective technologies. It is relevant when managing access, reducing exposure, documenting safeguards, or demonstrating accountability.