AML: Anti-Money Laundering in Crypto and Finance

When working with AML, the set of laws, regulations and procedures that stop illegal money from slipping through the financial system. Also known as Anti-Money Laundering, it powers the compliance engines behind exchanges, wallets and institutional platforms.

One of the core building blocks of KYC, the "Know Your Customer" process that verifies a user’s identity before allowing transactions, is Customer Due Diligence. KYC supplies the data AML systems need to flag suspicious activity, and together they form the front line of crypto compliance. In practice, a solid KYC workflow lets an exchange quickly run watch‑lists, source‑of‑fund checks, and risk scoring, which then feed into AML monitoring tools.

Global Standards and Emerging Rules

The FATF, the Financial Action Task Force that sets international AML standards, shapes how every jurisdiction drafts its own rules. FATF’s guidance on virtual asset service providers (VASPs) introduced the Travel Rule, a requirement that transaction parties share sender and receiver information across borders. This rule directly extends AML reach, ensuring that cross‑border crypto transfers can be traced just like traditional bank wires.

In Europe, the new MiCAR, the Markets in Crypto‑Assets Regulation that brings crypto under EU financial law, forces service providers to embed AML and KYC checks into their platforms. MiCAR also mandates ongoing monitoring, reporting of suspicious transactions, and cooperation with national authorities. The result is a tighter web where AML, KYC, FATF guidance, the Travel Rule, and MiCAR all reinforce each other.

Our collection below covers real‑world examples of how these pieces fit together. You’ll find exchange reviews that highlight AML compliance gaps, deep dives into country‑specific regulations, and step‑by‑step guides on staying audit‑ready in 2025. Whether you’re a trader, developer, or compliance officer, the posts ahead give you actionable insight to navigate the ever‑changing AML landscape.