AML is an acronym for Anti Money Laundering / Anti-Money Laundering and refers to the comprehensive framework of legislation, regulations, policies, and procedures designed to prevent and detect money laundering activities, where illegally obtained income is disguised to appear legitimate. This framework also addresses related financial crimes and terrorist financing. 

AML compliance is a legal requirement enforced by regulatory bodies, necessitating that all businesses, regardless of size or the nature of their counterparties, adhere to these standards. Thus, companies have an obligation to comply by actively performing KYC.