AML stands for Anti-Money Laundering. It is a set of laws, regulations, and procedures designed to prevent criminals from disguising illegally obtained funds as legitimate income. Money laundering is the process of making illegally obtained money, often from criminal activities like drug trafficking, terrorism, corruption, or tax evasion, appear to come from a legal source. The primary goal of AML measures is to detect and deter money laundering activities and other financial crimes. This is crucial for maintaining the integrity of the financial system and preventing criminals from using legitimate financial channels to hide and move illicit funds. Financial institutions such as banks, credit unions, investment firms, and other entities that deal with financial transactions are often subject to AML regulations. They are required to implement robust AML programs that include customer due diligence, transaction monitoring, suspicious activity reporting, and employee training, among other measures. AML regulations vary by country and jurisdiction, but many countries have developed their frameworks in line with international standards set by organizations like the Financial Action Task Force (FATF). These standards provide a foundation for countries to develop effective AML policies and cooperate internationally to combat money laundering on a global scale.