AML stands for Anti-Money Laundering.
It is a set of laws and regulations designed to make it more difficult for criminals to launder money through cryptocurrencies into Fiat, or fiat currency, is a currency that exists and has value merely because it's home government says so. A fiat curr... Click for full definition cash.
To “launder” money means to conceal the origins of money. Typically, it is money that was made through illegal means, then they devise some kind of scheme to obscure it’s origins using a variety of different setups (crypto is just one potential means)… with the effect being that it is “clean” cash on the other end and nobody can track to find that it was originally illegally generated.
AML rules are designed to make it more difficult to run illegal cash through these systems without ability to detect and track it. Most AML regulations involve things such as reporting transactions of a certain size, holding periods, etc.