AML
DEFINITION
This is a short abbreviation for “Anti-Money Laundering”.
BRIEF EXPLANATION
This refers to the legal supervisory control of all institutions which are financial in nature in order to spot or identify any activity which promotes or involves money laundering in its very nature.
The very core of the Blockchain industry is at war with the idea of AML due to the fact that most transactions are done are untraceable. Therefore, it is hard to check for money laundering on Blockchain platforms.
Examples
When dealing with AML, companies are expected to follow all required steps in order to meet the policies which have been set by AML bodies
Advantages
• It helps to reduce the number of fraudulent activities
Disadvantages
• It does not work with cryptocurrencies due to the fact that BlockChain platforms are untraceable
ASSOCIATED WORDS: Know your customer (KYC), Blockchain
TRIVIA: Did you know that in 2014, Charlie Shrem, a popular advocate for Blockchain technology was imprisoned for money laundering?