Anti Money Laundering Law and Legal Definition
Anti money laundering refers to the legal controls that require financial institutions and other regulated entities to prevent or report money laundering activities. Earlier money laundering applied only to organized crimes. The term includes all financial transaction generating an asset or a value as the result of an illegal act. For example, tax evasion and false accounting. A bank must be diligent in ascertaining a customer's identity and must monitor transactions for suspicious activity. All the financial institutions are required to identify transactions of a suspicious nature. The financial institutions must report such identities to the financial intelligence unit in their country. Anti money laundering was implemented in the U.S by the Bank Secrecy Act of 1970.
Legal Definition list
Related Legal Terms
- Action for Money had and Received
- Action for Money Lent
- Action for Money Paid
- Ad Officium Justiciariorum Spectat Unicuique Coram Eis Placitanti Justitiam Exhibere
- Adequate and Full Consideration in Money or Money’s Worth
- Advertising Substantiation
- Aetas Infantiae Proxima
- Affirmanti Incumbit Probatio
- Affirmati Non Neganti Incumbit Probatio
- All Substantial Rights to a Patent [Internal Revenue]
