While money laundering refers to concealing sources of illegal money through different complicated processes and multiple transactions, anti money laundering are specific rules, laws, and regulations in place to prevent such transactions. These regulations and policies work towards uncovering illegal income obtained by different people following a complex money trail.
These regulations require financial institutions and banks to regulate their credit and deposit accounts to keep track of where the income is coming from in different accounts. Individual officers are appointed to make sure all institutions follow these rules and regulations. Many people often try to carry out laundering by depositing in foreign accounts; thus, it is essential to keep track of all income and make sure it is accounted for in the country’s gross national income (GNI.) Law enforcement agencies and the government have to maintain a meticulous process to make sure no money laundering is carried out as it hurts the entire economy of the country.