Anti-Money Laundering (AML)

A supervisory and regulatory system to reduce the inflow and outflow of funds (money) as a result of illegal transactions.

Anti-money laundering (AML) is a concept that distinguishes the typical structure within a trading platform that allows users to buy and sell and a different structure that forestalls illegal activities. The term itself encompasses a variety of regulations regarding the acquisition of money through doubtful means. Thus, the presence of an AML framework or algorithm in a fiat or crypto trading platform is considered proof of the legitimacy of the platform.

In the blockchain ecosystem, AMLs fall within the category of components that imply that a particular platform or system is safe and secure. They do not even have to be computer algorithms and can be conditions such as KYC (Know Your Customer) requirements to ensure the integrity of the platform with reference to the flow of money in and out of it.

Previous term

Angel Investor

Read More

Next term

Application Programming Interface (API)

Read More