AML-CTF

AML-CTF stands for Anti-Money Laundering and Counter-Terrorism Financing. These rules refer to a set of laws, regulations, and procedures intended to prevent individuals and entities from disguising illegally obtained funds as legitimate income. The AML aspect focuses on the prevention, detection, and reporting of money laundering activities, while CTF is concerned with preventing and responding to terrorism financing.

The AML-CTF rules typically require financial institutions and other regulated entities to:

• Perform customer due diligence (CDD) and know your customer (KYC) procedures to verify the identity of their clients and assess their risk profiles.
• Monitor and report suspicious activities to the relevant authorities.
• Keep records of financial transactions for a specified period.
• Implement risk management systems to identify potential money laundering or terrorism financing activities.
• Train staff to recognize and handle potentially suspicious transactions.

AML-CTF regulations vary by country but are often influenced by international bodies such as the Financial Action Task Force (FATF), which sets international standards in the fight against criminal financial activities. Compliance with AML-CTF regulations is mandatory for financial institutions, and failure to comply can result in significant fines and reputational damage.