Definition
Anti-Money Laundering (AML)
Regulatory controls to detect and prevent illicit funds from entering an SPV.
Anti-money laundering (AML) is the regulatory framework — primarily the US Bank Secrecy Act and FinCEN rules — that requires SPV sponsors and their administrators to detect and prevent illicit capital flows. AML controls include KYC verification, sanctions screening (OFAC), beneficial ownership checks, source-of-funds questionnaires for large commitments, and ongoing transaction monitoring. SPV platforms run AML automatically as part of investor onboarding and flag matches for human review.