Glossary · People and paperwork
Anti-Money Laundering(AML)
In short
AML refers to the laws and regulations designed to prevent criminals from disguising illegally obtained funds as legitimate income. Financial institutions must comply with these rules.
What it means in a deal
As a borrower, your lender will perform AML checks as part of their due diligence. Be prepared to provide detailed documentation about the source of your equity injection to prove funds are legitimate and not "round-tripped" or from illicit activities.
Official sources
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Related terms
Common questions about Anti-Money Laundering
- What counts as "my own money" for the down payment?
- How does the SBA decide how much money I can borrow?
- Who actually lends the money for an SBA 7(a) loan?
- Who actually provides the money for an SBA 7(a) loan?
- Who actually gives me the money for an SBA 7(a) loan?
- Does the government directly lend money for an SBA 7(a) loan?
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.
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