AML
Anti-Money Laundering
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.
- 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
In plain words
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.
Where AML applies
What AML checks
- Identification (KYC)
- Sanctions lists
- PEP status
- Source of wealth (SoW)
- Source of funds (SoF)
- Large transactions
- Adverse media
- Court cases
- World-Check databases
- Compliance department
- Regulators
- FATF standards
How an AML check works
- 01Identification (KYC)
- 02Compiling a file on the origin of the money
- 03Screening against sanctions and databases
- 04Compliance decision
- 05Transaction approved
What you need to know
- Everyone, without exception, evidences the legality of their money with documents
- AML covers both identification (KYC) and checking the source of funds
- Checks are run against sanctions lists and media databases (World-Check)
- Fail AML and the account will not be opened, the passport will not be issued
- Check fees paid are usually not refunded on refusal
Common mistakes
- Assuming “honest” money does not need to be evidenced with documents
- Routing money through third-party accounts without explanation
- Bringing in a large sum in cash or from someone else’s account
- Concealing episodes in your background — the check will find them anyway
- Not assembling the file in advance and learning of the problem from the refusal
What this means for a BRIDGES client
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.
Frequently asked questions
01 /Why am I asked for documents even on money I earned honestly?
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.
02 /What happens if the money does not pass the AML check?
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.
03 /How does AML differ from KYC?
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.
04 /What is the FATF?
An international organisation that sets standards for combating money laundering and terrorist financing. AML in most countries is built on its recommendations.
05 /Is cryptocurrency checked under AML?
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.
06 /How are AML and due diligence connected?
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.
See also
Read next
This material has undergone editorial review by BRIDGES.
Pass AML without your payment being frozen?
We will assemble a file on the origin of the money to the bank’s or programme’s requirements and close contentious points before filing.