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Money Laundering

Overview

Money laundering is the illegal process of disguising illicit funds as legitimate by moving them through financial systems. It typically involves three stages: placement, layering, and integration.Criminals use laundering to hide proceeds from crimes such as drug trafficking, corruption, or fraud.

Regulators worldwide enforce AML laws requiring financial institutions to detect, prevent, and report money laundering. Banks, fintechs, insurers, and payment providers deploy KYC, transaction monitoring, and sanctions screening tools to combat it.Global frameworks like FATF’s 40 Recommendations guide regulators in harmonizing standards. Preventing money laundering is not only a legal requirement but also essential to protect financial system integrity and public trust.

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Explore tools that help you onboard, monitor, and verify with confidence

AML Screening

Screen users against Politically Exposed Persons (PEP), watchlists, sanctions lists, adverse media, and more through one-time screening and advanced monitoring.

Transaction Monitoring

Monitor transactions in real-time and analyse past behaviour to identify suspicious activities and ensure regulatory compliance across the user journey.

Criminal Screening

Perform thorough background checks and verify criminal records to maintain compliance and strengthen onboarding security.

Related Terms

Placement (AML stage)

Layering (AML Stage)

FAQ

What is money laundering?

The process of disguising illicit funds as legitimate through financial channels.

Why is it harmful?

It enables criminal activity and threatens financial system integrity.

Who combats it?

Regulators, banks, and financial institutions worldwide.

How is it detected?

Through KYC, transaction monitoring, and suspicious activity reporting.