What is the main goal of the Anti-Money Laundering (AML) regulations for mortgage lenders?

The main goal of the Anti-Money Laundering (AML) regulations for mortgage lenders is to prevent fraudulent transactions. These regulations are designed to identify and report suspicious activities that may be indicative of money laundering, which is the process of concealing the illegal origins of money. By implementing AML measures, lenders are tasked with monitoring financial transactions, conducting due diligence on customers, and actively reporting any suspicious activity to regulatory authorities. This is critical in the mortgage industry as it helps uphold the integrity of financial systems and prevent illicit activities that could harm both consumers and the economy as a whole.