AML (Anti-Money Laundering)
The legal framework requiring financial platforms to detect and report criminal money flows — the reason exchanges monitor transactions.
Anti-Money Laundering (AML) rules are laws requiring financial businesses — including crypto exchanges — to detect, prevent and report attempts to disguise illegally obtained money. In practice, AML is why exchanges verify identity (KYC), monitor transaction patterns, and sometimes freeze suspicious deposits.
Under frameworks like the US Bank Secrecy Act and the EU’s AMLD directives, regulated platforms must file reports on suspicious activity. For ordinary users the practical impact is simple: expect identity checks on any licensed platform, and expect questions if you deposit funds with a complicated history. Platforms advertising “no AML, no KYC” are advertising legal risk.