Term

Anti-Money Laundering

Laws and processes that aim to prevent illicit funds from being disguised as legitimate.

Type:
regulation
compliance
Also known as:
AML
1
definition

Anti-Money Laundering (AML) refers to regulations and practices designed to detect and deter the movement of illicit funds through financial systems. In crypto, exchanges and service providers often implement AML policies such as transaction monitoring, risk scoring, travel rule compliance, and reporting suspicious activity.

2
considerations
  • AML/KYC requirements vary by jurisdiction
  • Decentralized protocols may not have traditional counterparties, creating regulatory ambiguity
  • Privacy must be balanced with compliance obligations and user rights

All terms and definitions may update as the Cryptionary improves.