AML reporting refers to the formal process by which financial institutions notify regulatory authorities about potentially suspicious or illegal financial activities. This includes filing Suspicious Activity Reports (SARs), Currency Transaction Reports (CTRs), and other documentation required under anti-money laundering laws.

It is a cornerstone of any effective AML compliance program. Without accurate and timely reporting, financial crime risks go undetected undermining national security, enabling corruption, and exposing firms to legal penalties. AML reporting also connects to broader compliance obligations, including customer screening, transaction monitoring, and recordkeeping.

Why AML Reporting Matters

AML reporting enables governments and regulators to detect patterns of criminal behavior across institutions and borders. It helps uncover money laundering, terrorist financing, sanctions evasion, and other illicit activities.

From a business standpoint, it also protects firms from reputational and regulatory harm. Filing reports demonstrates compliance with laws such as the Anti-Money Laundering Act (AMLA) and provides a paper trail in the event of future audits or investigations.

Without reporting, even advanced transaction monitoring and customer screening processes would be ineffective, since alerts wouldn’t translate into regulatory action.

Types of AML Reports

There are several different types of AML reports, each with specific criteria and thresholds:

1. Suspicious Activity Reports (SARs)

Filed when a firm detects behavior that may indicate money laundering or criminal activity. Examples include structured transactions, unusual fund flows, or discrepancies in Know Your Customer (KYC) data. See Suspicious Activity Reports (SARs) for more.

2. Currency Transaction Reports (CTRs)

Mandatory in countries like the U.S. when cash transactions exceed a certain threshold (e.g., $10,000). These are not based on suspicion, but on volume.

3. Sanctions Reporting

If a firm detects a potential match on a sanctions list, such as OFAC, UN, or EU lists, they may need to file a report within 24 hours. See Sanctions Screening.

4. Cross-Border Transfer Reports

Many jurisdictions require reports on international transfers above a set value (e.g., €1,000 in the EU) under regulations like the Travel Rule.

Who Is Required to File AML Reports?

Entities required to conduct AML reporting include:

• Banks and credit unions

• Payment service providers

• Money services businesses (MSBs)

• Crypto exchanges

• Investment firms and brokers

• Insurance companies

• Real estate firms

• Accountants and lawyers in some jurisdictions

Each must file reports according to local laws, such as FinCEN guidance in the U.S., the FCA’s expectations in the UK, or FATF-aligned rules elsewhere. Delays, omissions, or incomplete filings can result in penalties or investigations.

AML Reporting Thresholds and Timelines

Filing thresholds and deadlines differ depending on the type of report and jurisdiction. For example:

Regulators expect institutions to maintain audit trails for submitted reports and demonstrate that policies are in place to detect, escalate, and file them properly.

The Role of Technology in AML Reporting

Modern AML platforms automate much of the reporting process. For example:

• FacctGuard can auto-generate alerts for threshold breaches or risky transaction patterns.

• Alert Adjudication enables compliance analysts to review alerts and escalate them to SARs if needed.

• Know Your Business helps streamline KYB and cross-border reporting obligations.

Automating reporting not only reduces operational risk but also improves accuracy and timeliness, key indicators regulators examine during AML audits.

Best Practices for AML Reporting

To maintain strong reporting practices:

• Centralize reporting procedures in your AML policy

• Use templates and systems to standardize report formats

• Conduct regular training for staff on when to escalate cases

• Test and audit your reporting flow for gaps

• Update escalation thresholds based on evolving risks and risk-based approach

It’s also critical to log decision rationales for why reports were or were not filed, ensuring traceability.