ANTI MONEY LAUNDERING (AML) IN BANKING
ANTI MONEY LAUNDERING (AML) MEANING AND ROLE IN ECONOMY.
Anti-money laundering (AML) refers to a framework of steps and rules made by the government to stop the practice of generating income through illegal actions in the economy.
BREAKING DOWN 'Anti Money Laundering (AML)'
AML laws and regulations target activities that include market manipulation, trade of illegal goods like drugs weapons , corruption of public funds and heading of tax,. Financial institutions are expected to comply with AML laws, make sure that customers are aware of these laws .If customers are aware then they also aware other people.
ADVERSE EFFECTS OF MONEY LAUNDERING
Money laundering activities typically aim to generate income with no regard for the probable negative economic, political and social involvement . These activities also include income-generating hostilities to raise funds for separate illegal activities.This results in increase of supply of money in market which cause high inflation .If it not control then it cause various problem to an economy.
RECENT DEVLOPMENT IN ANTI MONEY LAUNDERING
AML rules and regulation rose to global gratitude when the Financial Action Task Force (FATF) was formed along with a structure for international standards for fighting money laundering.The main aim of FATF is to maintain a balance in financial market and reduce the impact of AML or black money.
