Why is KYC used in some areas where AML is not?

Question

Accepted Answer

KYC is used to verify the identity of customers while AML is used to detect and prevent money laundering.

KYC is used to ensure that financial institutions are not used for illegal activities.
AML is not used in some areas because those areas may not have a high risk of money laundering.
KYC is mandatory in many countries for financial institutions to comply with regulations.
AML is used in areas where there is a high risk of money laundering, such as in countries with weak anti-money laundering laws.
KYC helps to prevent identity theft and fraud by verifying the identity of customers.
AML helps to detect and prevent money laundering by monitoring financial transactions and identifying suspicious activity.

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