Under most AML frameworks, which practice is required?

Under most AML frameworks, which practice is required?

• A. Customer due diligence
• B. Enhanced due diligence
• C. Suspicious activity reporting
• D. High risk customer screening

Answer: (C)

Suspicious activity reporting is the mandatory action most AML regimes require. Institutions continuously monitor transactions and customer behavior, and when something appears suspicious, they must file a report with the regulator or financial intelligence unit. This reporting obligation is the key mechanism regulators rely on to detect and investigate money laundering and related crimes. While customer due diligence and enhanced due diligence are essential safeguards and high‑risk screening is a common control, the universal, legally required step across frameworks is to report suspicious activity.

Suspicious activity reporting is the mandatory action most AML regimes require. Institutions continuously monitor transactions and customer behavior, and when something appears suspicious, they must file a report with the regulator or financial intelligence unit. This reporting obligation is the key mechanism regulators rely on to detect and investigate money laundering and related crimes. While customer due diligence and enhanced due diligence are essential safeguards and high‑risk screening is a common control, the universal, legally required step across frameworks is to report suspicious activity.