In many parts of the world, money laundering is a severe setback. It gives a direct hit to the economy of the country and ultimately sees the flight of capital from one country to another. In a nutshell, money laundering is the process where the money is put in various financial channels to give legitimacy to the capital. The source of the money is not known, so the person used multiple channels to move funds from one bank to another, making it difficult to trace the origin of the money.
Anti Money Laundering or anti-money drive checks to catch such acts. There are many SOPs as well as procedures that financial institutions should put in place to curb and eliminate money laundering. AML is one such measure that makes it difficult for corrupt people to move money in banks.