Anti-money laundering (AML)

Anti-money laundering, or AML, refers to rules and controls designed to detect and prevent money laundering, terrorist financing, and other financial crime. In crypto, anti-money laundering controls affect account opening, identity verification, transaction monitoring, and reporting obligations for platforms. AML does not describe one single action, rather it explains a compliance framework used by financial firms and crypto businesses. Due to AML rules, users may expect to be asked to provide additional personal information or to explain activity. In Canada, anti-money laundering obligations can involve FINTRAC and other applicable requirements. A crypto trading platform may ask a user to verify their identity or review suspicious activity as part of anti-money laundering controls.