# Anti-Money Laundering (AML)

*Banking & Payments — Finicade finance glossary*

AML is the framework of rules requiring financial firms to detect and report attempts to disguise criminal proceeds as legitimate funds. Laundering is conventionally described in three stages — placement, layering, integration. Enforcement fines have run into billions, and the system's effectiveness is genuinely contested: estimates suggest well under 1% of laundered money is intercepted.

**Also known as:** AML, money laundering, financial crime compliance

**Related terms:** [Know Your Customer (KYC)](https://finicade.com/glossary/know-your-customer), [Suspicious Activity Report](https://finicade.com/glossary/suspicious-activity-report), [Sanctions Screening](https://finicade.com/glossary/sanctions-screening), [Compliance](https://finicade.com/glossary/compliance), [Correspondent Banking](https://finicade.com/glossary/correspondent-banking)

Source: https://finicade.com/glossary/anti-money-laundering