AML-CFT

AML-CFT (or AML-CTF) is the acronym for “Anti-Money Laundering & Countering the Financing of Terrorism“.

These two concepts designate good practices when offering financial services, to report possible money laundering or terrorist activity to the authorities.

Money laundering means the introduction of cash that was illegally obtained into the economy.

AML-CFT rules and policies can differ according to the country. However, in general, countries and institutions base their AML-CFT rules on the Financial Action Task Force (FATF), a supranational organization tasked with fighting financial crime. The FATF publishes guidelines and advises states on how to fight financial crime. Their guidelines are often used as a basis for the financial laws of multiple countries.

For example, the AML-CFT laws in the European Union are based on the 5th edition of the FATF recommendations on the topic.