Why do crypto exchanges need a strong AML program?

As a practitioner in the field of cryptocurrency and finance, I often wonder: Why is it so crucial for crypto exchanges to have a robust Anti-Money Laundering (AML) program? With the anonymous and decentralized nature of cryptocurrencies, the potential for illicit financial activities is ever-present. A strong AML program ensures that exchanges are able to detect, report, and prevent suspicious transactions, minimizing the risk of their platforms being used for illegal activities such as fraud, tax evasion, or terrorist financing. It also provides investors with a sense of security and trust in the cryptocurrency ecosystem, vital for its continued growth and adoption. Can you elaborate on the importance of AML in crypto exchanges?