A Guide to Anti-Money Laundering for Crypto Firms

What Is Anti Money Laundering?

AML Compliance Knowledge & Training

Over the past several decades, money laundering has become an increasingly prevalent issue. Both financial institutions and governments are constantly looking for new ways to fight money launderers, and several anti money laundering policies have been put in place to help this effort.

AML Anti Money Laundering

What is Anti Money Laundering?

Anti money laundering (AML) refers to all policies and pieces of legislation that force financial institutions to monitor their clients to prevent money laundering. AML laws require that financial institutions report any financial crime they detect to relevant regulators.

Objective of Anti Money Laundering

The objective of anti-money laundering (AML) is to deter criminals from feeding their illicit funds into the financial system. Criminals use money laundering to hide the true source of their money that has been derived from crimes.


Anti money laundering laws entered the global arena soon after the Financial Action Task Force was created. The FATF was responsible for the creation of most AML standards, and it made a framework for countries to follow. After putting this framework into effect, the FATF then began to systematically identify countries that did not have proper legislation regarding money laundering. This “name and shame” tactic helped motivate countries to alter their legislation and start properly enforcing the policies that were already in place. Currently, the FATF counts 37 member countries.

Anti Money Laundering in Banking

Given that financial institutions play such a pivotal role in the world of financial crime, it is important that they are properly trained on how to identify and handle money laundering. Almost every bank employee receives training in anti-money laundering, and all of them are legally required to report suspicious activity. Additionally, new anti money laundering software is increasingly used to help detect potential criminal activity that AML bank employees may not notice.

Request a Demo Of Our AML Solutions

See how our AML tools can help with anti money laundering in your organization.

Get Started

Financial Institutions’ Reactions to AML

Although financial institutions are obliged to follow AML regulations, this does not necessarily mean that they agree with them. Recently, many banks have become vocal about their dislike of anti money laundering policies and their belief that these policies are both costly and ineffective. Every year in Europe and America alone, millions of dollars are used in an attempt to regulate and stop money laundering. But many are starting to believe that the AML systems currently in place are largely ineffective and that the amount of money we spend on them is not worth their questionable accomplishments.

Anti Money Laundering and UNODC

In addition to the FATF, the United Nations Office on Drugs and Crime also proactively tries to identify and stop money laundering. This office has an informative website that provides facts and details about money laundering, as well as how it can be spotted and prevented with anti money laundering plans. The UN Office on Drugs and Crime also provides anti money laundering software that can be used to help prevent financial crime, collect data, and perform analysis.

The World Bank also provides information on its website about money laundering, as well as offering a plethora of advice in anti money laundering to help both governments and private enterprises end the money laundering epidemic.

AML for Fintechs

Are you an early stage FinTech and need an AML solution? Discover ComplyLaunch™, our automated solutions package.

Get Started

Disclaimer: This is for general information only. The information presented does not constitute legal advice. ComplyAdvantage accepts no responsibility for any information contained herein and disclaims and excludes any liability in respect of the contents or for action taken based on this information.

Copyright © 2022 IVXS UK Limited (trading as ComplyAdvantage).