AML (Anti-Money Laundering)
AML refers to the laws and monitoring systems designed to stop criminals from disguising illicit funds as legitimate.
In depth
Regulated exchanges screen wallet addresses against sanctions lists, monitor for unusual patterns like rapid in-and-out transfers, and file reports with authorities when required. In India this falls under the Prevention of Money Laundering Act, with reporting to FIU-IND. These controls are why compliant venues can maintain banking relationships.
Why it matters
AML controls occasionally delay a transaction — understanding why turns frustration into confidence.