AML Compliance: Global Rules, Risks, and Best Practices

When dealing with AML compliance, the set of policies and procedures aimed at preventing money laundering, terrorist financing, and related illicit activity. Also known as anti‑money laundering, it forms the backbone of financial integrity across crypto and traditional markets. The Financial Action Task Force (FATF), an inter‑governmental body that sets international standards for AML and combats the financing of terrorism drives most of the worldwide guidance you’ll see.

Key Pillars of Effective AML Compliance

At its core, Know Your Customer (KYC), the process of verifying client identities and monitoring their activity is the first line of defense. Without solid KYC, you can’t meet the Bank Secrecy Act (BSA), the U.S. law that requires financial institutions to keep records and file reports that help detect suspicious activity. In short, AML compliance requires KYC procedures, and the BSA shapes how those procedures are reported in the United States.

Different jurisdictions apply the same concepts in slightly different ways. Singapore’s Monetary Authority (MAS) has built a sandbox‑friendly regime that still forces exchanges to run full KYC checks and file suspicious transaction reports—a model many Asian markets look to. Vietnam, on the other hand, levies hefty fines of 150‑200 million VND for using crypto as a direct payment method, showing how enforcement can be punitive when AML rules are ignored. In places like Venezuela, the state‑run PETRO token tries to sidestep sanctions, creating a compliance nightmare for anyone dealing with the token. China’s sweeping mining ban illustrates another angle: when a government clamps down on the infrastructure, it indirectly tightens AML oversight by limiting the flow of illicitly mined coins. Even Georgia’s new licensing framework for crypto mining forces operators to register, report, and adhere to AML standards before they can plug in their rigs.

All these examples boil down to the same idea: AML compliance isn’t a single checklist—it’s a living system that adapts to local law, international standards, and the evolving crypto landscape. Below you’ll find a curated set of articles that break down these topics in plain language: from Singapore’s regulatory playbook and Vietnam’s fine structure, to practical guides on filing FBAR reports for foreign crypto accounts, and deep dives into how sanctions‑evasion schemes challenge global compliance. Dive in to see how each piece fits into the broader compliance puzzle and pick up actionable tips you can apply right away.