Updated
GL-A-03
Glossary · Due Diligence and compliance
AML - the rules banks and programmes use to check where your money came from
An international control system: where the money comes from, whether it is linked to crime and whether it evades sanctions. Every bank and every immigration program is required to comply with AML. Fail the check and no account is opened and no passport is granted.
01 / In 30 seconds
The short answer
- What it is
- An international system of rules against money laundering
- Where it applies
- Opening accounts, investing in citizenship and residence, large transfers
- What is checked
- Sanctions, source of wealth (SoW) and source of funds (SoF)
- What is required
- Documents on the origin of every large sum
- Can you prepare
- Yes: document the chain of the money’s origin in advance
02 / In plain words
What AML means
AML (anti-money laundering) is an international system of rules against money laundering. Put simply: before accepting your money, a bank or an immigration programme must understand where it came from, whether it is linked to crime and whether it gets round sanctions.
AML operates at every step: when opening an account, when investing in a citizenship programme, when making a large transfer. You are checked against sanctions lists, your source of wealth and the source of the specific funds are examined, and the results are cross-checked against databases such as World-Check. The compliance department oversees this, and above it stand regulators and the FATF standards.
For the client it means one thing: the financial system does not accept bare money “out of nowhere”. You must be able to explain every large sum with documents — statements, contracts, tax returns. Fail AML and the account will not be opened and the passport will not be issued, and the fees paid are usually not refunded.
A case from practice
An entrepreneur brings in $250,000 for an investment in Dominican citizenship. Under AML, the bank asks to see the whole chain: a stake in a company was sold — the contract and a statement showing receipt; part came from dividends — the distribution resolutions and a tax return. Until the chain from earnings to account matches document for document, the payment is held.
Where AML applies
- Opening a bank account
- Investing in citizenship or residence
- Large international transfers
- Buying property abroad
- The work of investment funds and brokers
- Cryptocurrency transactions
03 / What it covers
What AML checks
Identity and status
- Identification (KYC)
- Sanctions lists
- PEP status
Money
- Source of wealth (SoW)
- Source of funds (SoF)
- Large transactions
Reputation
- Adverse media
- Court cases
- World-Check databases
Who oversees it
- Compliance department
- Regulators
- FATF standards
04 / How it works
How an AML check works
Identification (KYC)
Passport, address and, for companies, the owners.
Compiling a file on the origin of the money
The chain from earnings to account, documented.
Screening against sanctions and databases
Sanctions lists, PEP, adverse media.
Compliance decision
Compliance approves, asks for documents or refuses.
Transaction approved
The payment or application goes through.
05 / Key facts
What you need to know
01What it is
Anti-money laundering rules
Before accepting money, a bank or programme must understand where it came from and that it is not linked to crime or sanctions.
02What is checked
KYC, SoW, SoF, sanctions
Identity, the source of wealth and of the specific sum, sanctions lists and databases such as World-Check.
03Who oversees it
Compliance and regulators
Above the compliance department stand regulators and the FATF standards.
04The outcome
No AML, no account or passport
Fail the check and you get no account and no passport, and fees are usually not refunded.
Common mistakes
Not documenting "honest" money
Gather statements, contracts and tax returns for every large sum.
Routing money through other people's accounts
Pay from your own account with a clear chain of receipts.
Hiding episodes in your past
Disclose them with explanations: the check will find them.
Learning of a problem from a refusal
Prepare the file in advance and close weak spots before applying.
06 / Expert advice
How to prepare in advance
Before filing, document the whole chain of the money’s origin — from earnings to the account the payment will come from (source of funds) — and explain your wealth as a whole (source of wealth). It helps to check yourself in advance against the same sanctions and media databases the reviewer uses and to close any contentious points. Then AML passes without the payment being frozen.
What we do for you. BRIDGES GLOBAL assembles your AML file in advance to the requirements of the particular programme or bank: we document the chain of the money’s origin, screen you against the same sanctions and media databases the reviewer uses, and close any contentious points before filing.
Dmitry NagyTax consultant, international taxation and compliance (ex-Big4)
07 / Questions
Frequently asked questions
AML is designed so that everyone, without exception, must evidence legality with documents. It is a mandatory step for any large sum, not a suspicion directed at you personally.
The account will not be opened or will be frozen, and the citizenship application will be rejected. Check fees paid are, as a rule, not refunded.
KYC is the identification of a particular client (who you are and where the money comes from). AML is the whole system of rules against money laundering, of which KYC is a part.
An international organisation that sets standards for combating money laundering and terrorist financing. AML in most countries is built on its recommendations.
Yes. Large crypto transactions and cash-outs to fiat also go through AML: the bank or exchange asks you to evidence the source of funds and screens against sanctions.
Due diligence is the practical application of AML to a particular applicant: checking identity, sanctions, the origin of money and reputation before a passport is issued or an account is opened.
Related terms
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