AML (Anti-Money Laundering)
AML (Anti-Money Laundering) refers to a set of laws, regulations, and procedures aimed at preventing the disguise of illegally obtained funds as legitimate income.
In the European Union, AML is primarily governed by the EU's AML Directives, most recently the 6th Anti-Money Laundering Directive (6AMLD), which came into effect in December 2020.
In the venture capital (VC) context, adherence to AML policies such as those outlined in the 6AMLD is crucial for ensuring all capital invested in and distributed by the VC fund is clean, thereby shielding the fund from legal consequences and boosting its reputation among investors.
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