Forex glossary
AML (Anti-Money Laundering)
AML means laws and procedures against money laundering, including customer due diligence, risk assessment and transaction monitoring. Required documents and reporting to the competent financial intelligence unit depend on jurisdiction and the relationship's risks.
Illustrative example
How does it work in practice?
In a hypothetical account application, you supply identity details and the institution later asks about the source of a 20,000 EUR deposit. This is an AML check, not an automatic finding of criminal conduct.
A case to work through
A change of ownership
Model: a corporate account’s beneficial owner changes after onboarding.
- Compare the new control structure with the recorded information.
- Identify updates required by local law and the institution’s procedure.
What follows? Provide accurate current information through the required channel.
Example boundary: FATF sets standards; specific obligations arise under local law.
A useful distinction
AML (Anti-Money Laundering) / KYC (Know Your Customer)
KYC identifies the customer; AML also covers ongoing relationship and transaction assessment.
Check your understanding
Recognize when customer information may need updating.
Show the answer and explanation
No, monitoring can continue
Initial identification is only one part of the checks.
Entity, obligations and client protection
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Related terms
Sources and documentation
- FATF: customer due diligence recommendations
Recommendation 10: customer, beneficial owner and ongoing monitoring; local law sets specific duties.
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The example illustrates the mechanism. Check current account conditions and instrument specifications with the provider.