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The Complete List of AML Acronyms in the Finance Industry
Whether you’re dealing with CDD, filing SARs, or preparing for FATF evaluations, knowing the language is the first step to effective compliance.
We know that navigating the anti-money laundering (AML) landscape can sometimes feel like learning a new language. Between regulatory updates, evolving compliance requirements, and the sheer volume of abbreviations flying around, it’s easy to get lost in the alphabet soup.
That’s why we’ve compiled this comprehensive guide to the most important AML acronyms used in the finance industry today. Whether you’re a compliance officer, a fintech founder, or just someone trying to make sense of the regulatory world, consider this your go-to reference.
Let’s dive in.
The Foundation: Core AML Acronyms
Every AML conversation starts with these fundamentals:
AML (Anti-Money Laundering): The laws, regulations, and procedures designed to prevent criminals from disguising illegally obtained funds as legitimate income.
CFT/CTF (Countering the Financing of Terrorism (CFT) or Combating Terrorist Financing (CTF)): The practices of investigating, deterring, and preventing funding for terrorist activities. These terms are often used interchangeably.
AML/CFT: The combined framework addressing both money laundering and terrorist financing risks.
KYC (Know Your Customer): The process of verifying customer identities and understanding their financial dealings to effectively manage risk. It’s a fundamental part of any AML program.
Key Regulatory Bodies and Standard-Setters
Understanding who makes the rules is just as important as understanding the rules themselves:
FATF (Financial Action Task Force): An inter-governmental body that develops and promotes global standards for combating money laundering, terrorist financing, and other illicit finance. The FATF’s 40 Recommendations are recognized as the global AML/CFT standard.
FinCEN (Financial Crimes Enforcement Network): A bureau of the U.S. Treasury that administers and enforces the Bank Secrecy Act (BSA) – America’s primary AML/CFT regulatory regime.
ACAMS (Association of Certified Anti-Money Laundering Specialists): The leading professional organization for AML professionals worldwide.
CAMS (Certified Anti-Money Laundering Specialist): The prestigious certification designation offered by ACAMS.
APG (Asia/Pacific Group on Money Laundering): A FATF-style regional body comprising jurisdictions in the Asia/Pacific region.
ESAAMLG (Eastern and Southern Africa Anti-Money Laundering Group): A regional FATF-style body.
MONEYVAL (Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism): A permanent monitoring body of the Council of Europe.
EBA (European Banking Authority): The EU’s banking regulator with AML oversight responsibilities.
BCBS (Basel Committee on Banking Supervision): Sets global banking standards, including those related to AML.
CBUAE (Central Bank of the United Arab Emirates): A key regional regulator.
AUSTRAC: Australia’s AML/CTF regulator and financial intelligence unit.
Also read: List of Gambling Commissions Around the World
Due Diligence and Customer Risk Assessment
These acronyms cover the processes financial institutions use to identify and manage risk:
CDD (Customer Due Diligence): The process of assessing customers’ backgrounds to determine their identity and risk level.
EDD (Enhanced Due Diligence): Additional scrutiny applied to higher-risk customers, such as Politically Exposed Persons.
KYC (Know Your Customer): As mentioned above, the identity verification and risk assessment process.
ACIP (Applicable Customer Identification Program): Part of an AML program detailing CDD obligations and methods.
PEP (Politically Exposed Person): Individuals with high-profile political roles who present a higher risk of involvement in money laundering.
SIP (Special Interest Person): High-profile individuals convicted of or investigated for financial or organized crime.
SoW (Source of Wealth): The origin of an entity’s assets, whether monetary, property, gifts, or loans.
SoF (Source of Funds): A more specific focus on the immediate source of funds for a particular transaction.
BNI (Bearer Negotiable Instrument): Non-cash forms of money such as cheques, traveller’s cheques, bearer bonds, and money orders.
EIV (Electronic Identity Verification): The method of electronically collecting and verifying a person’s identity.
Reporting and Monitoring
When suspicious activity is detected, these acronyms come into play:
SAR (Suspicious Activity Report): A report filed when suspicious financial activity is detected.
STR (Suspicious Transaction Report): Similar to a SAR, often used interchangeably.
CTR (Cash Transaction Report): A report required for large cash transactions.
BSA (Bank Secrecy Act): The United States’ primary AML/CFT statute, administered by FinCEN.
FIU (Financial Intelligence Unit): A national centre for receiving and analyzing financial intelligence.
Also read: How Does GGR and NGR Related to AML Reporting?
International Frameworks and Information Sharing
FATCA (Foreign Account Tax Compliance Act): A U.S. law aimed at detecting U.S. taxpayers using offshore accounts to conceal income and assets from the IRS.
CRS (Common Reporting Standard): The OECD’s global standard for the automatic exchange of financial account information among participating countries.
OECD (Organisation for Economic Cooperation and Development): Developed the CRS.
UNSC (United Nations Security Council): Issues targeted financial sanctions (TFS).
SWIFT (Society for Worldwide Interbank Financial Telecommunications): The global messaging network used for financial transactions.
Risk Assessment and Management
RBA (Risk-Based Approach): The principle that countries and institutions should identify, assess, and manage ML/TF risks and take measures proportionate to those risks.
IRA (Internal Risk Assessment): The exercise institutions conduct to identify and assess their money laundering and terrorist financing risks.
NRA (National Risk Assessment): A country-level assessment of ML/TF risks.
ML (Money Laundering): The process of disguising illicit proceeds.
TF (Terrorist Financing): The provision of funds for terrorist activities.
PF (Proliferation Financing): Financing the proliferation of weapons of mass destruction.
TFS (Targeted Financial Sanctions): Sanctions imposed on designated individuals and entities.
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Specialized Areas and Emerging Risks
TBML (Trade-Based Money Laundering): Disguising the proceeds of crime through trade transactions.
SBML (Service-Based Money Laundering): Money laundering through services rather than goods.
VASP (Virtual Asset Service Provider): Businesses dealing in cryptocurrencies and other virtual assets.
DNFBP (Designated Non-Financial Businesses and Professions): Sectors like legal, accounting, and real estate that have AML obligations.
NPO (Non-Profit Organization): Subject to AML/CFT scrutiny due to potential misuse for terrorist financing.
NBFC (Non-Banking Financial Company): Financial institutions that don’t hold a banking license but are still regulated for AML.
ARS (Alternative Remittance System): Money transfer systems operating outside traditional banking channels, such as hawala.
RHP (Registered Hawala Provider): A regulated provider of informal value transfer services.
RE (Regulated Entity): Any institution subject to AML/CFT regulation.
LEA (Law Enforcement Agency): Bodies that receive and act on financial intelligence.
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Compliance Infrastructure
AMLCO (AML Compliance Officer): The individual responsible for implementing and maintaining an organization’s AML/CFT compliance program.
CRO (Chief Risk Officer): The executive in charge of managing risks to the company.
AMLID (Anti-Money Laundering International Database): A compendium of AML laws and regulations, accessible to Financial Intelligence Units.
AST (Automated Screening Tool): AI-powered tools for screening sanctions, PEPs, and adverse media.
Recent Developments to Watch
The regulatory landscape never stands still. At LegalBison, we’re closely monitoring several recent changes:
- EU AMLA Regulation: Regulation (EU) 2024/1620 came into force in June 2024 and officially applies from July 2025.
- FATF Recommendation 16 Revisions: The FATF finalized comprehensive revisions to the “Travel Rule” in June 2025, with changes set to take effect by the end of 2030.
- UK AML/CTF Rules 2025: These new rules kick in on 31 March 2026.
- US AML Act of 2020: FinCEN continues to implement and modernize the AML/CFT regime under this landmark legislation.
Final Thoughts
Mastering AML acronyms is about understanding the global framework designed to protect the financial system from abuse. Whether you’re dealing with CDD, filing SARs, or preparing for FATF evaluations, knowing the language is the first step to effective compliance.
At LegalBison, we help FinTech institutions navigate this complex landscape every day. If you need support with AML compliance, licensing, risk assessments, or regulatory reporting, we’re here to help.
