I read an article about regulation in Nepal recently and based on this I conclude that the purpose of Anti Money Laundering Acts seems only to minimize crime. Is there any other purpose of the Anti Money laundering Act? If not then what was lacking from existing laws that prompted the government to pass this act?
AML in 1990's was mostly to prevent revenue loss. i.e. Black Money being converted into white and then avoid taxes etc. It involves fake invoices, billing, round robin trip of money, etc.
AML is 2000's realised that quite a bit of this activity was being used by Terrorist and drug mafia to fund operations.
Every country has laws to monitor such activities and report to regulator.