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Based in Exeter - working across prop trading firms worldwide

Glossary · Compliance

AML

  • Also called
  • anti-money laundering
  • sanctions screening
  • PEP screening
  • source of funds

What it means

In a prop firm, AML risk sits on both sides of the money flow: fees coming in, often by card or crypto, and performance rewards going out. Typical controls are sanctions and politically exposed person screening, monitoring for unusual purchase and payout patterns, and refusing payouts to third parties.

Whether a prop firm is a regulated or obliged entity under AML law varies by jurisdiction and structure. Many firms adopt AML controls anyway because their payment processors, crypto providers and banks require them.

A written AML policy, a named responsible person and records of checks are the minimum most counterparties will ask to see.

Related terms

Read these next.

Compliance

KYC

KYC (know your customer) is the identity verification a prop firm runs on traders, usually ID document, liveness and address checks, most often before the first payout.
Compliance

Restricted countries

Restricted countries are the jurisdictions a prop firm will not sell to or pay out to, because of sanctions, regulation, payment provider terms or platform licensing.
Running the business

Payment processor

A payment processor moves card and other payments between a prop firm's checkout, the card networks and the acquiring bank that settles funds to the firm.
Compliance

MiCA

MiCA (Markets in Crypto-Assets Regulation) is the EU regulation for crypto-asset issuers and service providers, relevant to prop firms that take or pay in crypto or stablecoins.
Running the business

High-risk merchant account

A high-risk merchant account is a card processing account for businesses acquirers consider risky, such as prop firms, with higher fees, reserves and stricter monitoring.

On your website

Where this shows up on a prop firm site.

Feature

Trust center

One place for the facts a cautious trader checks: the legal entity, address, people, policies, restricted countries and how payouts work.
Tool

Prop Firm Disclaimer Generator

Draft the simulated-trading and risk disclaimer every prop firm page needs, for your lawyer to review.
Guide

Are Prop Firms Regulated? The State of Play in 2026

Are prop firms regulated? Mostly not as prop firms. Where rules still apply (promotions, consumer law, AML) and what regulators said through 2026.
Guide

KYC and AML Software for Prop Firms (2026)

KYC and AML software for prop firms: when to verify, what Sumsub and Veriff publish on price, which providers vendors use, and the site flow.

Looking for a prop firm to trade with, not a website? Compare firms on PropFirmPal, the comparison site our founder owns.Go to PropFirmPal →

All glossary termsGuides

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