It may be used to refer to a set of government regulations which require certain types of financial service company to monitor the activities of their clients in order to detect suspicious activity, including money laundering and other financial activities associated with organized crime and terrorism. It may also be used to describe the policies and actions taken by a finance company in order to comply with those regulations.
AML compliance generally requires that ‘Know Your Customer’ (KYC) measures be put in place in order to identify the source of any suspicious activity.
Bitcoin AML Requirements
The requirements imposed by AML legislation will be different depending on the jurisdiction in which the business operates, and the precise nature of their business.
In the United States, for example, AML compliance is required ‘Money Service Businesses’ and ‘Money Transmitters’ by the Bank Secrecy Act (BSA).
Bitcoin AML Compliance Resources
- The Merkle Tree – A world map showing the regulatory environment in each country around the world, colour coded according to how strict or relaxed they are.
- IdentityMindGlobal – A compliance program for Bitcoin and digital currency businesses.
- BitAML – Low cost monthly compliance packages
- Elliptic – Blockchain analysis tools for AML compliance