Reply To: How do banks and other financial institutions go about identifying and preventing the funding of terrorist organizations and other criminal activities?

[Simon Haughtone]

AML rules, regulations, and procedures prevent financial system money laundering. Money laundering disguises illegal gains as lawful funds. These money are then invested in real estate, enterprises, and other financial instruments.

AML rules identify, prevent, and disrupt money laundering by criminal groups. Protecting the financial system from unlawful usage is the purpose.

AML rules relate to banks, casinos, money service enterprises, and real estate corporations. AML compliance processes must involve customer diligence, unusual activity reporting, and continual monitoring for these firms.

Banking firms and other regulated companies must check and monitor consumer transactions for suspicious conduct. They must notify authorities of suspected conduct.

The FATF was established as an intergovernmental organisation to develop and advocate policies to fight money laundering and terrorism funding. Many nations have embraced its AML/CFT guidelines.

AML protects the financial system and fights financial crime. It involves public-private collaboration and rigorous compliance processes by banking institutions as well as other regulated companies.