Anti-Money-Laundering (AML)
The body of US laws and regulations -- principally the Bank Secrecy Act of 1970 and the USA PATRIOT Act of 2001 -- requiring financial institutions to detect and report transactions associated with money laundering or terrorist financing. For broker-dealers, the operational implementation is FINRA Rule 3310, requiring a written AML program, a designated AML compliance officer, ongoing employee training, independent testing, and a Customer Identification Program (CIP). Two mandatory filings: CTR for cash transactions over $10K, SAR for any suspicious activity regardless of amount. AML failures account for the bulk of nine-figure regulatory fines on broker-dealers and banks; the failure mode is usually escalation-gap (front-line staff saw the flag, AML officer never got the formal report).
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Related terms
Currency Transaction Report (CTR) · Investment Policy Statement (IPS) · Know Your Client (KYC) · Onboarding Workflow · Politically Exposed Person (PEP) · Rebalancing Policy
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