AML Compliance (Anti-Money Laundering)

AML compliance, short for anti-money laundering compliance, is the set of policies, controls and record-keeping a crypto business uses to detect and prevent the movement of criminal proceeds through its platform. In practice it combines identity checks on customers, ongoing monitoring of deposits and withdrawals, screening against sanctions and watchlists, and reporting of suspicious activity to the relevant authority. Exchanges, custodians, brokers and many payment services are typically expected to run such a programme, appoint a responsible compliance officer, and keep records for a defined retention period. For users, AML compliance is the reason a platform may request documents, ask about the source of funds, or delay a withdrawal pending review. Requirements differ by jurisdiction, so obligations and thresholds vary.