AML

AML (Anti-Money Laundering) is a set of procedures and controls designed to prevent financial infrastructure from being used for money laundering and other illicit financial activity.

On centralized crypto exchanges, AML controls may include transaction monitoring, source-of-funds analysis, detection of unusual activity, customer screening, and reporting or cooperation with authorities where legally required.

AML is closely related to KYC, but the concepts are different. KYC focuses primarily on establishing and verifying customer identity, while AML covers a broader framework for monitoring and controlling financial activity.