The Countering America’s Adversaries Through Sanctions Act (CAATSA) is a U.S. federal law enacted in 2017 to impose sanctions on countries involved in activities that threaten U.S. national security, such as Russia, Iran, and North Korea. The primary focus of CAATSA is to deter these adversarial nations from engaging in activities like cyber-attacks, election interference, and support for terrorism. However, its impact extends to the global financial system by mandating strict compliance measures for financial institutions and businesses. 

In relation to anti-money laundering (AML) and financial crime compliance, CAATSA requires organizations to strengthen their due diligence procedures. It emphasizes monitoring and reporting on suspicious transactions involving sanctioned entities, thereby preventing the facilitation of illicit financial flows. Non-compliance can lead to severe penalties, making CAATSA a critical element in the broader framework of global financial crime prevention.