What type of entity is usually the subject of an AML investigation?

The focus of AML investigations primarily revolves around financial institutions, including banks and payment processors, because these entities handle the largest volumes of monetary transactions and are key players in the financial system. They are often exposed to various risks related to money laundering due to their role in facilitating financial activities. Financial institutions are subject to strict regulatory oversight and must comply with anti-money laundering laws and regulations, making them a primary focus for AML investigations.

In the context of AML, these institutions are scrutinized for any suspicious transactions, as they are the gateways through which illicit funds may be funneled into the legitimate financial system. Their obligations include implementing robust compliance programs, conducting due diligence on customers, and reporting any suspicious activities to authorities. This emphasis on financial institutions underlines their significant potential exposure to risks associated with money laundering and the need for stringent compliance measures.

Other options, while they can be involved in broader financial crimes, typically do not serve as the primary subjects of AML investigations compared to financial institutions. Retail stores, health organizations, and real estate companies may have regulatory requirements concerning financial transactions, but they do not handle funds at the scale or frequency that would necessitate the same level of AML scrutiny as banks and payment processors.