Glossary · People and paperwork
AML Compliance(Anti-Money Laundering compliance)
In short
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 in a deal
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.
Official sources
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Related terms
Common questions about AML Compliance
- How does SBA Form 1919 ensure borrower eligibility compliance for a 7(a) loan?
- Does an SBA 7(a) loan require specific reporting or compliance after I receive the funds?
- What if the business I'm buying has a history of environmental violations or ongoing compliance issues?
- How does a lender ensure compliance with 'prudent lending standards' when underwriting a startup 7(a) loan?
- How must a lender document the full standby status of a seller note to ensure SBA compliance?
- How does the SBA review franchise agreements for compliance if there are unusual clauses regarding termination or transfer?
Defined by CapBench SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
Know what you'll need before you apply
Tell us about the deal and who's buying — we'll flag the guaranty, eligibility, and paperwork issues that slow SBA approval before they cost you time.
Free · No documents · Usually same-day
Backed by data on 1,000+ SBA lenders and 300,000+ funded deals. Your details go only to lending partners you ask to be matched with — never sold to advertisers.