AML (Anti-Money Laundering)
AML (Anti-Money Laundering) is the body of laws, regulations and internal controls that require banks, payment providers and contractor-payout platforms to prevent their systems from being used to launder money or finance crime. It’s the reason any platform that moves money makes you verify your identity and, sometimes, holds or questions a payment.
What AML requires of a platform
- KYC (Know Your Customer) — verify the identity of every customer at onboarding.
- KYT (Know Your Transaction) — monitor transactions for suspicious patterns on an ongoing basis (especially on crypto rails).
- Sanctions & PEP screening — check customers and recipients against sanctions and politically-exposed-person lists.
- Suspicious-activity reporting — file reports with the relevant financial-intelligence unit when something looks wrong.
Why it matters for contractor payments
AML is invisible until it isn’t: it’s why onboarding asks for ID, why a first payout can be delayed, and why a mismatch between your invoice name, ID and bank account can freeze funds. Choosing a payout provider with solid, well-run AML/KYC is a feature, not friction — it’s what keeps cross-border payments from being reversed or blocked. It’s unrelated to worker classification, which is a separate legal question.