Just need a simple explanation of what KYC AML CFT means and how does it work if I'm going to buy and sell cryptocurrencies.
This definition is not limited to cryptocurrencies but in case you want to do any financial transactions using trusted parties.
Cryptos provide a layer of decentralization If you mining or buying currencies using P2P otherwise you must pass through one of the current financial systems and the loss of decentralization.
The short answer is quoted below and for details ---->
https://bitcointalk.org/index.php?topic=454795.msg5010104#msg5010104What is KYC ?
Know your customer (KYC) refers to due diligence activities that financial institutions and other regulated companies must perform to ascertain relevant information from their clients for the purpose of doing business with them. The term is also used to refer to the bank regulation which governs these activities. Know Your Customer processes are also employed by companies of all sizes for the purpose of ensuring their proposed agents', consultants' or distributors' anti-bribery compliance. Banks, insurers and export credit agencies are increasingly demanding that customers provide detailed anti-corruption due diligence information, to verify their probity and integrity.
What is AML?
Standing for "Anti-money Laundering", it is a set of procedures, laws or regulations designed to stop the practice of generating income through illegal actions. In most cases money launderers hide their actions through a series of steps that make it look like money coming from illegal or unethical sources was earned legitimately.