The term "AML code" is not explicitly defined in the provided reference. However, based on the context, it likely refers to the rules and regulations designed to combat money laundering and terrorist financing. These rules are intended to detect and report suspicious activities, including underlying crimes like securities fraud and market manipulation. These rules originate from the Bank Secrecy Act and its implementing regulations, which are collectively referred to as "AML rules".
In essence, the "AML code" represents a comprehensive set of guidelines and legal requirements that firms must follow to prevent and identify illicit financial activities.
Here's a breakdown:
- Purpose: To detect and report suspicious activities related to money laundering and terrorist financing.
- Origin: Stems from the Bank Secrecy Act (BSA) and its implementing regulations.
- Scope: Covers a wide range of financial institutions and activities.
- Examples of Predicate Offenses:
- Securities fraud
- Market manipulation
Therefore, while not a formal "code" in the programming sense, the AML framework acts as a code of conduct and a set of regulatory requirements for financial institutions.
