Anti-Money Laundering Framework

Definition ∞ An Anti-Money Laundering framework comprises the regulations and procedures designed to deter illicit financial activities. This structure includes legal mandates, reporting requirements, and compliance protocols that financial institutions and digital asset service providers must follow. Its primary goal is to prevent funds obtained from criminal enterprises from appearing legitimate. The framework helps identify suspicious transactions and report them to relevant authorities.
Context ∞ News reports often discuss the evolving Anti-Money Laundering framework as governments globally seek to regulate digital assets more rigorously. The ongoing challenge involves applying traditional financial regulations to the pseudonymous and borderless nature of cryptocurrencies. Future regulatory updates will likely focus on enhanced traceability and cross-jurisdictional cooperation to strengthen these controls.