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KYC vs AML (2025 Beginner Guide) – Simple & Clear Explanation
KYC and AML are two of the most commonly used terms in compliance. Many beginners confuse them — but they are completely different concepts with different goals and responsibilities.
This beginner-friendly 2025 guide explains what KYC is, what AML is, and the exact difference between them — with simple examples.
Short answer:
KYC = Identify and verify the customer.
AML = Prevent and detect money laundering and financial crime.
What Is KYC?
KYC (Know Your Customer) is the process of verifying the identity of customers before providing financial services.
KYC includes:
- Customer identification
- Identity verification documents
- Address verification
- Risk classification
- PEP checks
- Sanctions screening
- CDD & EDD (when required)
What Is AML?
AML (Anti-Money Laundering) refers to the overall framework used to prevent, detect, and report financial crime.
AML includes:
- Transaction monitoring
- High-risk alerts
- Case investigations
- Suspicious Activity Reports (SAR/STR)
- Sanctions compliance
- Fraud, bribery & corruption controls
- Risk assessment frameworks
KYC vs AML – Key Differences
| Category | KYC | AML |
|---|---|---|
| Purpose | Verify customer identity | Detect & prevent financial crime |
| Focus Area | Customer onboarding & review | Monitoring accounts & transactions |
| Where Done | Frontline KYC teams | AML, TM, FCC, SAR units |
| Examples | Document collection, CDD | Alert review, STR filing |
How KYC and AML Work Together
KYC is the first step. AML comes next. KYC verifies who the customer is. AML checks what the customer is doing.
AML → Use that information to detect suspicious activity
Example to Understand Easily
A customer deposits $50,000 cash.
KYC team asks for ID, address, occupation → “Restaurant owner”.
AML team checks transactions → sees repeated large cash deposits → possible structuring.
KYC Jobs vs AML Jobs
KYC Roles
- KYC Analyst
- CDD Analyst
- Onboarding Specialist
- KYC Reviewer
- KYC Quality Checker
AML Roles
- AML Analyst
- Transaction Monitoring Analyst
- Sanctions Investigator
- Financial Crime Investigator
- SAR/STR Analyst
Frequently Asked Questions (FAQ)
Is KYC part of AML?
Yes — KYC is a major component of AML, but AML covers much more.
Which is more difficult — KYC or AML?
AML is generally more complex due to monitoring, investigations, and SAR reporting.
Which pays more — KYC or AML?
AML roles usually pay higher because they require deeper investigation skills.
Want Training in Both KYC & AML?
Learn KYC, AML, CDD/EDD, sanctions, investigations, and financial crime frameworks inside GO-AKS KYC Certification, G-CAMO, and G-CAMI.
Explore Certifications →Visit the KYC Knowledge Hub 2025
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