{"ok":true,"canonical_url":"https://dealroom.so/glossary/aml-compliance","api_url":"https://dealroom.so/api/public/glossary/aml-compliance","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"aml-compliance","term":"AML Compliance","aka":"Anti-Money Laundering compliance","group":"People and paperwork","definition":"Regulations and procedures financial institutions must follow to prevent and detect money laundering. This includes verifying customer identities and reporting suspicious transactions.","what_it_means":"When applying for an SBA loan, your lender is obligated to perform AML checks on you and the business. This means thorough identity verification and screening. Be prepared to provide extensive personal and business documentation, as the lender must ensure the funds involved in the transaction are legitimate and not from illicit activities.","url":"https://dealroom.so/glossary/aml-compliance","official_sources":[{"slug":"13-cfr-part-120","title":"13 CFR Part 120 — Business Loans","official_url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120","official_label":"View on eCFR","authority_tier":1,"publisher":"Office of the Federal Register","source_guide_url":"https://dealroom.so/sba-7a/sources/13-cfr-part-120"}],"related":[{"slug":"due-diligence","term":"Due diligence","url":"https://dealroom.so/glossary/due-diligence"},{"slug":"taxpayer-identification-number","term":"Taxpayer Identification Number","url":"https://dealroom.so/glossary/taxpayer-identification-number"},{"slug":"good-character","term":"Good character","url":"https://dealroom.so/glossary/good-character"},{"slug":"fraud","term":"Fraud","url":"https://dealroom.so/glossary/fraud"}],"related_questions":[{"question":"How does SBA Form 1919 ensure borrower eligibility compliance for a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/how-does-sba-form-1919-ensure-borrower-eligibility-compliance-for-a-7-a-loan"},{"question":"Does an SBA 7(a) loan require specific reporting or compliance after I receive the funds?","url":"https://dealroom.so/sba-loans/basics/does-an-sba-7-a-loan-require-specific-reporting-or-compliance-after-i-receive-the-funds"},{"question":"What if the business I'm buying has a history of environmental violations or ongoing compliance issues?","url":"https://dealroom.so/sba-7a/questions/what-if-the-business-i-m-buying-has-a-history-of-environmental-violations-or-ongoing-compl"},{"question":"How does a lender ensure compliance with 'prudent lending standards' when underwriting a startup 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-ensure-compliance-with-prudent-lending-standards-when-underwriting-a-sta"},{"question":"How must a lender document the full standby status of a seller note to ensure SBA compliance?","url":"https://dealroom.so/for-lenders/questions/how-must-a-lender-document-the-full-standby-status-of-a-seller-note-to-ensure-sba-complian"},{"question":"How does the SBA review franchise agreements for compliance if there are unusual clauses regarding termination or transfer?","url":"https://dealroom.so/sba-7a/questions/how-does-the-sba-review-franchise-agreements-for-compliance-if-there-are-unusual-clauses-r"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — AML Compliance","url":"https://dealroom.so/glossary/aml-compliance","source_type":"DealRoom Data"}}