Which regulation aims to prevent money laundering and financing of terrorism?

The regulation that aims to prevent money laundering and the financing of terrorism is known as KYC, which stands for "Know Your Customer." KYC is a critical component of financial regulations that requires businesses, particularly in the finance and banking sectors, to verify the identity of their clients. This process helps ensure that financial institutions understand their customers and their financial dealings to detect and mitigate risks associated with money laundering and terrorist financing.

KYC regulations often involve collecting various forms of identification and verifying customer information against government-issued documents. This thoroughness helps create a transparent and secure financial system by making it more difficult for illicit actors to use the financial system for unlawful activities. The implementation of KYC processes is essential for maintaining compliance with anti-money laundering (AML) laws and regulations.

Other choices such as GDPR (General Data Protection Regulation) relate to data privacy and protection rather than financial compliance, PCI (Payment Card Industry) focuses on payment card data security standards, and PPO (Private Placement Offering) pertains to specific securities offerings and does not primarily address issues of money laundering or terrorism financing. Thus, KYC is the regulation geared towards combating these critical financial crimes.