Definition ∞ AML Guidance refers to official recommendations and regulations designed to prevent money laundering. These directives are issued by regulatory bodies to financial institutions and other obligated entities, outlining procedures for identifying suspicious activities and reporting them. They typically cover customer due diligence, transaction monitoring, record-keeping, and risk assessment protocols. Adherence to AML guidance is mandatory to combat illicit financial flows and maintain financial system integrity.
Context ∞ AML guidance remains a critical component of financial regulation, particularly gaining prominence in the digital asset space as authorities address potential misuse of cryptocurrencies. Ongoing discussions center on adapting traditional AML frameworks to the pseudonymous and decentralized nature of blockchain transactions. Future updates will likely introduce more specific requirements for virtual asset service providers, emphasizing global cooperation to establish consistent standards.
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