What is AML compliancy - please help?

[AMD]

It may sound as a stupid question to most of you here but for me it's difficult to figure out what exactly it means, AML compliancy, can someone please help in simple words?

Don't through links to large explanations here, I would just like to know the basic!

 

[John Spectre]

Usually this meant proofing of funds in question of how they was receiving and how you are planning to spend them.
So, the institution who do this check could verify that you do not do any illegal things.

 

[Happines987]

John Spectre said:
Usually this meant proofing of funds in question of how they was receiving and how you are planning to spend them.
So, the institution who do this check could verify that you do not do any illegal things.
Click to expand...

Nothing to really add, well explained.

 

[latisja]

John Spectre said:
Usually this meant proofing of funds in question of how they was receiving and how you are planning to spend them.
So, the institution who do this check could verify that you do not do any illegal things.
Click to expand...

How will this be solved if there is a discrepancy between laws? Business is incorporated in country A and business activity is legal in country A, but considered illegal in country B. If funds are coming from people in country B, how will this be resolved?

 

[AMD]

that was of very good help. Thank you very muchthu&¤#

 

[Martin Everson]

latisja said:
How will this be solved if there is a discrepancy between laws? Business is incorporated in country A and business activity is legal in country A, but considered illegal in country B. If funds are coming from people in country B, how will this be resolved?
Click to expand...

Funds came from illegal activity in country B so country A would freeze them i.e guns are legal in America but if you send money from gun sales to bank in UK then what you think is going to happen....lol?

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[John Spectre]

latisja said:
How will this be solved if there is a discrepancy between laws? Business is incorporated in country A and business activity is legal in country A, but considered illegal in country B. If funds are coming from people in country B, how will this be resolved?
Click to expand...

Every institution have own policy what need to do and what activity is set red flag for AML in their thinking. Its not actually matter how illegal this thing or legal in reality in A or B country. It is a personal vision of their understanding how to avoid problems.

Crypto as an example - just a version of money, that is not better or worsten compared to cash, but banks avoid it totally in question of AML, but could allow usual cash.