AML stands for “Anti-Money Laundering” and is a phrase you will come across when you register an account to buy Bitcoin from a centralised exchange or using any centralised financial service.

In fact, you go through AML procedures outside the Bitcoin world when you create a bank account, apply for a mortgage, setting up gas and electric in your home, mobile phone.

As these exchanges need to comply with local laws and regulations, AML is common practice and requires you to provide a government form of identification (e.g. passport) to prove you aren’t laundering money. They will check the information you provide against shared global criminal databases.

Once you have registered an account with a centralised Bitcoin exchange, they will ask you to provide additional information such as your name, date of birth, address and contact details. This allows them to build a customer profile which can be used to help detect any suspicious activity.

Once you’ve made it through this check, you will usually be good to go and start using the services you have registered for.