AML or Anti-Money Laundering is a regulation that governing bodies implement in order to ascertain that a company is not an accessory to money laundering. An AML Audit occurs when a company is put to the test to ensure that they have a proper Anti-Money Laundering program in place. If unsuccessful, the audit can lead to regulatory penalties, as well as a full review of business operations.
The EU implemented its Anti-Money Laundering directive in 1991, and it was most recently updated in 2018. In 2021, the EU established a new governing body to deal specifically with AML Audits called the Anti-Money Laundering Authority or AMLA.