An Anti-Money Laundering (AML) program is a set of policies, procedures, and internal controls that financial institutions, such as banks, broker-dealers, and money service businesses, establish to detect, prevent, and report instances of money laundering and other financial crimes.
The AML program requires financial institutions to perform customer due diligence (CDD) and ongoing monitoring of their customers to identify suspicious activities and transactions that may indicate money laundering or terrorist financing. Financial institutions are also required to report any suspicious transactions to regulatory authorities.
The AML program is designed to comply with various regulations and laws, such as the Bank Secrecy Act (BSA), which requires financial institutions to maintain adequate records and implement effective AML programs to prevent money laundering and other financial crimes. The AML program is an essential tool for financial institutions to manage the risks associated with money laundering and maintain the integrity of the financial system.