Financial criminals target gaming and gambling businesses for money laundering. Gaming and Gambling can also be used as a means of laundering funds obtained from criminal activities in general.
With technology development, transaction infrastructures such as money transfer are developing incredibly, but at the same time, criminals are developing the infrastructure of the methods they use to launder money for these transactions.
FinTech must comply with regulations just like traditional banks. These regulations are AML Regulations. All financial sectors have financial crime risks, so FinTechs, like other financial sectors, must comply with the AML obligations set by regulators.
In this article, we will explain the money laundering and terrorist financing risks faced by the crypto industry and how the crypto exchanges can ensure Anti-Money Laundering (AML) and Know Your Customer (KYC) compliance.
Banks or the banking sector are under the obligation of Anti-Money Laundering because they are at risk of financial crime. AML regulations contain measures that companies must take to detect and prevent financial crimes, and these regulations are determined by AML regulators and are a guide for businesses.
It is important to be aware of and act in accordance with the red flag indications that a transaction may be suspect. In some cases, you may need to inquire more about your customers.
More and more companies are using financial technologies such as Transaction Monitoring to monitor their customers' possible money laundering and terrorist financing activities and to comply with AML laws.