Money Laundering Prevention Act: Overview & Crypto Compliance Guide

When working with Money Laundering Prevention Act, the law that forces every financial service – from banks to crypto exchanges – to adopt strict anti‑money‑laundering (AML) standards. Also known as MLPA, it demands identity checks, continuous transaction monitoring, and timely reporting of suspicious activity.

One of the core pillars of the Act is Anti‑Money‑Laundering (AML), a framework that identifies, assesses, and mitigates money‑laundering risks across the financial ecosystem. AML works hand‑in‑hand with Know‑Your‑Customer (KYC), the process that forces platforms to verify real‑world identities before allowing any transaction. Together, AML and KYC create a data trail that regulators can follow, which is why the Act requires robust on‑chain transaction tracing. Tools like heuristic analysis, graph‑learning AI, and cross‑chain explorers serve this purpose, letting investigators map fund flows and pinpoint illicit actors.

Because the Act applies globally, firms build Crypto Compliance Programs, structured playbooks that align internal policies with AML, KYC, and reporting obligations. These programs typically include automated monitoring, periodic risk assessments, and staff training. When properly executed, they not only keep companies on the right side of the law but also reduce the chance of being caught in international Crypto Crime Enforcement operations, where agencies like INTERPOL and national financial intelligence units share data and run joint takedowns. In short, the Money Laundering Prevention Act sets the rulebook; AML and KYC provide the checklists; transaction‑tracing tools give the visibility; and compliance programs turn the rulebook into daily practice.

Below you’ll find a curated collection of articles that break down each of these pieces – from detailed AML regulation updates to step‑by‑step guides on building a compliance program, and real‑world case studies of crypto crime enforcement. Dive in to see how the Act shapes the crypto landscape and what you can do to stay compliant.