What does the acronym AML stand for in the banking context?

In the banking context, the acronym AML stands for Anti Money Laundering. This refers to a set of laws, regulations, and procedures that financial institutions must follow to prevent and combat money laundering activities, which involve disguising the origins of illegally obtained money. AML policies are essential for maintaining the integrity of the financial system and ensuring compliance with regulatory requirements.

Banks and other financial institutions implement AML measures to identify suspicious activities, report them to relevant authorities, and mitigate the risk of facilitating illegal financial transactions. Understanding AML is crucial for banking professionals, as it plays a significant role in the protection of the institution and the broader economy from financial crimes.