AML (Anti-Money Laundering)
AML is the framework of rules and processes preventing money laundering and terrorism financing via customer identification, transaction monitoring and reporting.
AML regulation dates back to the 1970s (US Bank Secrecy Act) and is formalised in the EU via successive directives (AMLD4, 5, 6). In the Netherlands implemented via Wwft with DNB and AFM oversight. Financial service providers must: identify customers (KYC), monitor transaction patterns, screen sanctions lists, and report unusual transactions to FIU-NL.
Example
A crypto exchange detects via transaction monitoring that client A receives 50× €9,999 in 3 days (just under the €10k threshold). This triggers an Unusual Transaction Report to FIU-NL.
Frequently asked questions
How severe are AML fines?
Very. ING received €775M in 2018 for AML deficiencies. Binance paid $4.3B in 2023. For smaller players: hundreds of thousands to millions.
Related terms
Further reading
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