Anti-Money Laundering and Combatting the Financing of Terrorism regulations demand that financial companies follow strict guidelines in order to curb and track illicit activity. Staying in compliance with these laws can often be difficult, especially for small cryptocurrency companies. The amount of money and staffing needed to enforce these rules can add up fast and is often unsustainable, but failure to do so could mean an eventual closure. This is having a notable impact on the industry as it works to keep up with the latest developments. However, AML software is being touted as a tool to deal with these issues, though there are still some limitations to overcome.
In the financial world, various regulations exist that control how banks and other institutions handle customer information and transparency around their clients’ activities. This is in an attempt to limit and document crimes such as money laundering, funding terrorism and the like. Usually, these companies are required to collect various identifying information about their customers so that not only are their activities monitored, but should anything illegal happen, there is a trace to who is behind it.
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