Glossary
Compliance & KYC

AML (Anti-Money Laundering)

AML rules require financial companies, and some other businesses, to prevent, detect and report money laundering and terrorist financing.

General information only, not legal, tax, financial or investment advice. Laws, rates and thresholds change often and depend on your situation, so check the official sources below and confirm with a qualified advisor before you act. Last reviewed September 2026.

Definition

Anti-money-laundering rules stop criminals from moving illegal money through the financial system. International standards come from the Financial Action Task Force (FATF).1 Each country turns them into local law. The EU Anti-Money Laundering Authority (AMLA) started operations in 2025 and plans to start direct supervision of selected financial firms in 2028.23 A single EU AML rulebook, the AML Regulation (AMLR), applies from 10 July 2027.4

Core AML controls

  • Customer due diligence (KYC and KYB)14
  • Transaction monitoring for unusual patterns14
  • Sanctions and PEP screening14
  • Reporting suspicious activity to the national financial intelligence unit (FIU)14
  • Record keeping, often for five years or more14

Why payouts are in scope

Payouts move money to many people quickly. Without controls, they can be used to split or hide funds. That is why many payout providers monitor patterns such as sudden volume spikes or many payees sharing one bank account.

How Talentir helps

Talentir screens every bank, PayPal and Venmo payout against sanctions lists before it runs and holds payouts for review when they exceed set limits. See how Talentir handles compliance

KYC and KYB

KYC (Know Your Customer) verifies a person's identity. KYB (Know Your Business) verifies a company, its owners and the people who act for it.

Data protection (GDPR)

Payout data contains personal data such as names, addresses, IDs and bank details, so privacy laws like the GDPR usually apply.

What is a Merchant of Record?

A Merchant of Record (MoR) is the legal entity that is the counterparty to a transaction and generally carries the tax, invoicing and compliance obligations for it.

Cross-border payments

A cross-border payment is a payment where sender and payee are in different countries, which usually adds currency conversion, fees and compliance checks.

Sources

  1. FATF: International Standards (Recommendations) ↩ ↩2 ↩3 ↩4 ↩5 ↩6

  2. EUR-Lex: Regulation (EU) 2024/1620 (AMLA) ↩

  3. AMLA: About AMLA and timeline ↩

  4. EUR-Lex: Regulation (EU) 2024/1624 (AMLR) ↩ ↩2 ↩3 ↩4 ↩5 ↩6

KYC and KYB

KYC (Know Your Customer) verifies a person's identity. KYB (Know Your Business) verifies a company, its owners and the people who act for it.

Data protection (GDPR)

Payout data contains personal data such as names, addresses, IDs and bank details, so privacy laws like the GDPR usually apply.

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DefinitionCore AML controlsWhy payouts are in scopeRelated topicsSources