Anti-Money Laundering, or AML, describes the legal and operational controls used to identify, assess and report suspected money laundering and related financial crime. In a transaction or document workflow, AML checks can affect whether a provider can accept instructions, receive funds or continue acting.
What It Is
AML is a risk-based compliance framework. A regulated or obliged business may identify the customer and beneficial owner, understand the purpose of a transaction, assess source-of-funds information, screen relevant parties and keep records. The precise duties depend on the business, transaction and current law.
What It Is Not
AML is not the same as KYC, although KYC is one component of a broader AML programme. It is not a certificate that guarantees a person or transaction is safe. A request for more information does not by itself mean wrongdoing is suspected.
Where it appears
AML checks commonly appear in banking, real estate, company and professional-service transactions. A provider may pause or decline work if required information is missing or a risk cannot be managed.
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Last reviewed: August 2026