<p>AML is only applied to customer relationships. In this case that would be people that have an account with a gateway and are using said account to either deposit or withdraw massive amounts of money/crypto from the gateway. </p>

<p>It cannot apply to rippled balances, as you don't need to provide any information to another entity in Ripple in order to extend a trust line to said entity. I.e. there is no customer relationship in that case.</p>

<p>All of the above is AFAIK and IANAL.</p>

CC BY-SA 3.0
2014-04-10T13:59:17.047Z
2014-04-10T13:59:17.047Z
Murch
<p>Can anyone explain how AML rules, alerting, and FinCEN reporting would work under Ripple?</p>

CC BY-SA 3.0
2014-04-10T13:26:26.203Z
I would suppose it would only apply to gateways, and then it would be pretty clear?
Murch
CC BY-SA 3.0
2014-04-10T13:39:20.470Z
@Murch I thought Ripple has a transitive property that masks the original transmitter and receiver (the "ripple"). In that case I would think it would complicate AML work, no?
makerofthings7
CC BY-SA 3.0
2014-04-10T13:59:26.027Z
mh, attempting an answer.
Murch
CC BY-SA 3.0
2014-04-14T00:41:50.230Z
this article touches on Ripple and KYC: [CoinDesk - Ripple Labs’ Grand Plan to Build a Global Payment Protocol](http://www.coindesk.com/ripple-labs-grand-plan-build-global-payment-protocol/)
Murch
<ripple><ripple-gateways><aml>
How would AML techniques work in Ripple?
makerofthings7
# How would AML techniques work in Ripple?

(Asked by: username_0 on 2014-04-06)

Can anyone explain how AML rules, alerting, and FinCEN reporting would work under Ripple?

**Tags:** ripple, ripple-gateways, aml

> **Comments:**
> **username_1**: I would suppose it would only apply to gateways, and then it would be pretty clear?  
> **username_0**: @username_1 I thought Ripple has a transitive property that masks the original transmitter and receiver (the "ripple"). In that case I would think it would complicate AML work, no?  
> **username_1**: mh, attempting an answer.  
> **username_1**: this article touches on Ripple and KYC: [CoinDesk - Ripple Labs’ Grand Plan to Build a Global Payment Protocol](http://www.coindesk.com/ripple-labs-grand-plan-build-global-payment-protocol/)  

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## 1 answers

### Answer by username_1 on 2014-04-10. Score: 1

AML is only applied to customer relationships. In this case that would be people that have an account with a gateway and are using said account to either deposit or withdraw massive amounts of money/crypto from the gateway.

It cannot apply to rippled balances, as you don't need to provide any information to another entity in Ripple in order to extend a trust line to said entity. I.e. there is no customer relationship in that case.

All of the above is AFAIK and IANAL.


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