Money Laundering (ML)

Money laundering is the illegal process of making large amounts of money generated by a criminal activity, such as drug trafficking or terrorist funding, appear to be earned legitimately. It typically involves three key stages:

Money laundering poses significant threats to the financial system's integrity and stability. It can undermine the economic and political stability of societies, erode trust in financial institutions, and has potentially devastating social consequences. As such, governments and international bodies rigorously combat money laundering with strict regulations and severe penalties for violations. Financial institutions are required to perform due diligence on their clients, continuously monitor transactions, and report suspicious activities to authorities to help prevent and detect money laundering activities.