Reporting Entity

Each country defines the list in its own law, but the core is similar. Banks, insurers, securities firms and money transfer services are nearly always included. Many countries add casinos, real estate agents, dealers in precious metals and stones, lawyers, accountants and virtual asset service providers. Once covered, the entity must identify its customers, keep records, train staff, appoint a responsible officer, monitor activity and file reports. Supervisors check that these duties are met and can fine firms that fall short. Being covered depends on what the business does, not on its size. Terms vary: the EU speaks of obliged entities, other systems of reporting institutions. Whether a business is covered decides who must run controls and who answers to the supervisor if they fail.

A country extends its anti-money laundering law to jewellery dealers who accept cash above a set amount. A mid-sized dealer now has to verify buyers, keep records for several years, appoint a compliance officer, and report large cash sales and suspicious cases to the national FIU. The supervisor visits within a year to test whether these steps are in place.