What is AML (anti-money laundering)?
Anti-money laundering (AML) is the set of laws, rules and controls that require financial institutions and some other businesses to detect and report money laundering, the process of making criminal proceeds look legitimate. In the United States the core law is the Bank Secrecy Act. Example (round numbers): a trading company that usually receives 40,000 dollars a month from three buyers suddenly receives 400,000 dollars from a new payer abroad. Its provider's monitoring flags the change and asks for the contract and invoices before releasing the funds.
- AML rules require financial institutions to know their customers, monitor transactions and report suspicious activity.
- Under the Bank Secrecy Act, institutions file reports of cash transactions over $10,000 (daily aggregate) and report suspicious activity.
- Splitting transactions to avoid a reporting requirement, known as structuring, is itself prohibited by 31 U.S.C. 5324.
- US payment stablecoin issuers are subject to the Bank Secrecy Act under the GENIUS Act of 2025.
- The FATF reported in June 2025 that most on-chain illicit activity now involves stablecoins.
How AML works
The Bank Secrecy Act, the name given to the Currency and Foreign Transactions Reporting Act of 1970 and later amendments, lets the US Treasury impose reporting and record-keeping duties on financial institutions. FinCEN, a Treasury bureau, writes and enforces the rules. Other countries have equivalent laws based on standards set by the Financial Action Task Force (FATF).
| AML control | What it means for a business customer |
|---|---|
| Customer due diligence | Identity, ownership and purpose checks at onboarding (see KYB) |
| Ongoing monitoring | Payments compared with the activity you declared |
| Cash transaction reports | Reports on cash transactions over $10,000 in a day |
| Suspicious activity reporting | Institutions report activity that might signify money laundering |
| Record keeping | Records of transactions and customer files kept for set periods |
Sources: FinCEN, Bank Secrecy Act; FinCEN, CDD rule. As published on 29 October 2026.
Where a business meets it
- Onboarding, through KYB checks on the company and its owners.
- Payments, when a provider asks for an invoice or contract behind an unusual transfer.
- Stablecoins. The GENIUS Act makes US payment stablecoin issuers subject to the Bank Secrecy Act and requires them to certify AML and sanctions programs; expect providers to ask more about token receipts.
- Trade. Banks compare invoices, shipping documents and payments, and a mismatch prompts questions.
Common mistakes
- Splitting payments to stay under a threshold. Structuring to evade a reporting requirement is prohibited by 31 U.S.C. 5324.
- Vague payment references. Quote the invoice number so each payment explains itself.
- Third-party payments. Money from someone other than the customer named on the invoice raises questions; agree it in writing first.
- Slow answers. A delayed reply to a review question can hold a payment longer than the review itself.
Related terms and how Helm handles it
AML includes sanctions screening and identifying the ultimate beneficial owner. Each Helm account has a named account manager, and review questions are answered in writing within one business day.
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USD, EUR and GBP accounts in your company's name, with a named account manager.
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What does AML mean in banking?
AML stands for anti-money laundering. It covers the checks, monitoring and reporting that banks and other financial institutions use to stop criminal money entering the financial system.
What is the $10,000 rule?
Under the Bank Secrecy Act, financial institutions file reports of cash transactions exceeding $10,000 in a day. Breaking transactions up to avoid the report, called structuring, is prohibited.
Why did my provider ask what a payment was for?
AML rules require providers to understand their customers' activity and monitor transactions. A payment that does not fit the declared activity prompts a question, and a clear invoice usually resolves it.
Do AML rules apply to stablecoins?
Yes. The GENIUS Act subjects US payment stablecoin issuers to the Bank Secrecy Act, and FinCEN treats businesses that exchange virtual currency for money as money transmitters with AML duties.
References
- FinCEN: The Bank Secrecy Act
- FinCEN: Customer Due Diligence final rule
- Congressional Research Service: Stablecoin legislation, an overview of the GENIUS Act of 2025 (P.L. 119-27)
- FATF: Targeted update on implementation of the FATF standards on virtual assets and VASPs (26 June 2025)
- FinCEN: Application of FinCEN's regulations to certain business models involving convertible virtual currencies (FIN-2019-G001, 9 May 2019)
This guide is general information for businesses, not financial, legal or tax advice. Rules, fees and timings were checked against the sources listed on the review date and may change.