AML programs run on top of the identity data KYC collects: transaction monitoring, risk scoring, sanctions screening, and suspicious-activity reporting. Obligations attach to regulated businesses such as banks, exchanges, and payment firms, with thresholds and triggers set per country.
The privacy consequence is that account activity is evaluated continuously and can be reported without notice. A flagged pattern can freeze funds or close an account before any human review, and the report itself is confidential from the customer.