Which entity is primarily responsible for enforcing AML regulations in most countries?

The primary responsibility for enforcing Anti-Money Laundering (AML) regulations typically falls to government regulatory bodies. These entities are charged with implementing and overseeing compliance with the laws and regulations designed to prevent money laundering activities. They establish the regulatory framework and ensure that various sectors, including financial institutions, adhere to those guidelines.

Government regulatory bodies have the authority to create rules, conduct investigations, and impose penalties for non-compliance. They also coordinate with other agencies and international organizations to combat money laundering effectively. This centralized approach allows for a more consistent enforcement of AML measures across different industries and geographical areas, ensuring that regulations are followed and that any illicit activities are reported and addressed.

While local law enforcement agencies do play a role in investigating specific criminal activities, they typically do so in collaboration with or under the guidance of these regulatory bodies. Private financial institutions have responsibilities to implement AML practices within their operations, such as customer due diligence and transaction monitoring, but they do not enforce the regulations on a broader scale. International banking organizations may provide frameworks or guidelines for AML practices but do not have the same enforcement authority as government bodies.