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What Is the Anti-Money Laundering Act (AMLA)?

The Anti-Money Laundering Directive (AMLD) is a directive or a set of regulations issued by the European Union to prevent and combat money laundering and terrorist financing. It provides a framework for member states to enact laws that enhance transparency and accountability in financial transactions, making it harder for illicit activities to go undetected. 

The directive places obligations on financial institutions, law firms, real estate agents, and other entities to perform customer due diligence (CDD), report suspicious activities, and maintain accurate records. It evolves with each new iteration (currently the 6th AMLD), reflecting emerging risks in areas like virtual currencies and advanced financial technologies. By enforcing stricter controls, the AMLD ensures that the financial system is not exploited for laundering proceeds from illegal activities, protecting both the economy and global security.

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