What does the global regulatory environment for AML include?

The global regulatory environment for Anti-Money Laundering (AML) encompasses a comprehensive framework that consists of a collective set of laws, regulations, and guidelines that govern AML efforts on an international scale. This means that it integrates various standards and practices adopted by different countries and global organizations to combat money laundering activities effectively.

Option B is accurate because it highlights that the regulatory environment is not limited to a single country's laws or specific regional regulations but is instead a combination of international standards and cooperative measures aimed at facilitating a unified approach to AML. Such global cooperation is reinforced by organizations like the Financial Action Task Force (FATF), which sets forth recommendations that member countries are encouraged to implement into their national legislation, reflecting a collaborative effort to enhance financial systems' integrity worldwide.

In contrast, the other options depict a narrower scope. Emphasizing only individual country's regulations does not account for the interconnectedness of global AML efforts. Limiting it to EU member state regulations or focusing solely on recommendations from financial institutions misses the broader context of international cooperation and the diverse range of regulatory bodies and laws involved in AML on a global scale.