Anti Money laundering refers to a group of actions and processes, laws and regulations designed to detour the practice of generating income through unlawful means. Despite the AML laws cover a limited amount of transactions , their implications are of long reach. For example the regulations for AML require that institutions provide credit , allow clients to open accounts to complete the process of due diligence to ensure they are not engaging in activities related to Money Laundering.
The responsibility to undertake these processes is under the institutions and not the delinquents or the government.
The Laws and regulations against money laundering have as objective the activities the manipulate the market , the commerce of illegal assets, the corruption of public funds, tax evasion and the activities that have as goal to hide such actions.
The delinquents must clean the funds obtained by unlawful means , and for this purpose certain unlawful steps are to be taken to prove the money has been lawfully earned.
One of the most common ways to launder money is by the execution of a legitimate commercial activity , where the funds that are used are from illegitimate purposes.
Depends on the financial institutions that issue credit or open accounts to investigate the clients and ensure that they don’t participate in a money laundering scheme .
