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

The primary responsibility for enforcing Anti-Money Laundering (AML) regulations typically falls on government regulatory bodies. These entities create, oversee, and implement laws and regulations designed to prevent, detect, and combat money laundering activities. Government regulatory bodies have the authority to establish compliance requirements for financial institutions and other obligated entities, conduct audits, and impose penalties for non-compliance. They also monitor and analyze transactions to identify suspicious activities that may indicate money laundering.

While local law enforcement agencies play a role in investigating and prosecuting money laundering cases, they generally do so under the framework established by these regulatory bodies. Private financial institutions are responsible for complying with AML regulations, identifying suspicious transactions, and reporting them to the authorities, but they do not enforce the regulations themselves. International banking organizations may provide guidelines and frameworks for AML practices, but they do not have regulatory authority in individual countries. Therefore, the correct answer highlights the crucial role that government regulatory agencies play in upholding AML laws.