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CryptoA
Anti-Money Laundering (AML)
A collection of rules, regulations, financial laws, strategies, and best practices used by financial institutions and businesses like cryptocurrency exchanges and banks to prevent criminals from laundering illegally obtained currencies. AML frameworks require institutions to verify customer identities, monitor transactions for suspicious patterns, and report potential violations to authorities. Non-compliance can result in severe penalties including fines and loss of operating licenses.
Example
“Before I could withdraw funds, the exchange required me to complete additional AML verification steps including proof of income.”