Anti-Money Laundering (AML) refers to a set of laws, regulations, and procedures intended to prevent criminals from disguising illegally obtained funds as legitimate funds. AML regulations require financial institutions and other regulated companies to implement internal controls, including customer due diligence and suspicious activity reporting, to detect and report any suspicious activity that may indicate money laundering or terrorist financing.

Compliance refers to the process of ensuring that a company or organization is following laws and regulations related to its industry or sector. In the context of AML, compliance refers to the process of ensuring that a financial institution or other regulated company is following the AML laws and regulations that apply to it.

There are several key components of an AML compliance program. These include:

Customer identification and verification: Financial institutions and other regulated companies are required to obtain sufficient information about their customers to be able to identify them, and to verify their identities using reliable and independent sources.

Suspicious activity monitoring and reporting: Financial institutions and other regulated companies are required to implement systems and controls to detect and report suspicious activities that may indicate money laundering or terrorist financing.

Risk assessment: Financial institutions and other regulated companies are required to assess their money laundering and terrorist financing risks, and to implement risk-sensitive systems and controls to mitigate those risks

Training and education: Financial institutions and other regulated companies are required to provide training and education to their employees to ensure that they understand and comply with the AML laws and regulations that apply to them.Overall, AML and Compliance is the process of ensuring institutions and businesses are in compliance with laws and regulations related to financial crimes such as money laundering, terrorist financing and many others to maintain integrity of financial system.