AML (Anti-Money Laundering) and KYC (Know Your Customer) are often used interchangeably, but they serve different purposes in the compliance ecosystem.
KYC: The Foundation
KYC is about verifying who your customer is — collecting identification documents, understanding the nature of their business, and assessing risk.
AML: The Ongoing Process
AML encompasses the broader framework of policies, procedures and technologies used to detect and prevent money laundering — including transaction monitoring, screening and reporting.