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Definition
AML, or Anti Money Laundering, refers to the laws, regulations, and procedures organizations use to detect, prevent, and report money laundering and other illicit financial activity. AML programs help identify suspicious transactions and ensure compliance with financial crime regulations.

Why it matters
AML controls protect financial systems from being used for criminal activity, terrorism financing, fraud, and sanctions evasion. Businesses in regulated industries must maintain AML programs to meet legal obligations and reduce risk.

Example use case
A bank monitors customer transactions for unusual activity and flags large unexplained transfers for AML review and investigation.