Finance glossary
Anti-Money Laundering — AML
Also known as: AML
In simple terms
Anti-money-laundering rules are the laws and checks that stop criminals disguising illegal money as legitimate. They are why banks verify identities and monitor unusual transactions.
On this page
What does anti-money laundering mean?
Anti-money laundering (AML) refers to the laws, regulations and procedures designed to prevent criminals from making illegally obtained money appear legitimate. Banks and many other firms must follow strict AML duties.
Know Your Customer checks are one part of a wider AML framework.
How anti-money laundering works
Firms must verify customers, assess risk, monitor transactions and report suspicious activity to the authorities. This can mean extra questions about large or unusual payments, or a payment being briefly held while checks are made.
The rules come from UK money-laundering regulations and related legislation.
How could this affect me?
AML checks can occasionally delay a genuine transaction, but they protect the financial system and help combat fraud and crime. Being ready to explain large or unusual movements of money helps things go smoothly.
Firms cannot always tell you why a payment is being reviewed, because tipping off about a suspicion can itself be an offence.
Things to watch out for
- Large or unusual payments may prompt extra questions or short delays.
- A firm may not be able to explain why a payment is under review.
- Never help someone move money you cannot account for — you could commit an offence.
Know your rights
- AML obligations arise from UK money-laundering regulations and the Proceeds of Crime Act 2002.
- Your personal data collected for AML is protected under UK GDPR / Data Protection Act 2018.
General information, not personal advice
Consumer Credit is an independent information service. We do not provide regulated financial advice or sell financial products. For advice on your own situation, speak to an appropriately authorised firm or a free service such as MoneyHelper. About Consumer Credit.
Sources
We checked this page against these official and authoritative sources.
- GOV.UK, Money laundering regulations (opens in a new tab). Accessed 22 Aug 2026.