Hi everyone, I'm curious to know more about Anti-Money Laundering (AML). Could someone explain what it actually means?

Building on what Carl explained, Anti-Money Laundering encompasses a range of practices and requirements that financial institutions must adhere to. These include conducting customer due diligence, which involves verifying the identity of individuals or entities engaging in financial transactions, and implementing transaction monitoring systems to identify potentially suspicious activities. AML regulations vary across jurisdictions, but they typically require reporting entities to file suspicious activity reports (SARs) when they encounter transactions that raise suspicions of money laundering or other illicit activities. AML efforts also involve international cooperation among law enforcement agencies and financial institutions to combat cross-border money laundering networks. Overall, Anti-Money Laundering is an essential framework in safeguarding the global financial system from being exploited for criminal purposes.