AML - Anti-Money Laundering

Definition
Anti-Money Laundering (AML) is the framework of laws, regulations, and controls designed to prevent the movement of illicit funds through the financial system. It obliges banks to detect, deter, and report suspicious activity by applying rigorous identification, monitoring, and escalation procedures throughout the client lifecycle.

Context
AML provides the regulatory foundation that defines why KYC and CDD exist.

• KYC ensures the bank knows who the client is and the purpose of the relationship.

• CDD determines how much risk the client presents and how closely they must be monitored.
  Together, they operationalise AML obligations within the Client Lifecycle Management (CLM) framework.

Within E-CLM, AML compliance is embedded through rules, workflows, and data controls that govern onboarding, screening, periodic reviews, and exit. AML risk ratings and alerts feed into CNRM analytics to reveal exposure patterns across client networks and geographies.

An effective AML capability depends on high-quality entity data, continuous due diligence, and coordinated responses across compliance, operations, and technology teams—ensuring financial-crime risk is managed as part of integrated client risk governance.