If an anti-money laundering (AML) issue is detected, who should it be reported to?

Reporting an anti-money laundering (AML) issue to a compliance officer or a senior officer is critical because these individuals are typically responsible for overseeing compliance with financial regulations, including AML laws. They have the expertise and authority to assess the situation properly, investigate the issue, and determine the appropriate course of action. Compliance officers are specifically trained to handle these types of regulatory concerns, making them the ideal point of contact for such reports.

In contrast, while informing a loan officer may seem like a potential route, they may not have the necessary training or authority to address AML issues effectively. Similarly, while reporting to federal authorities might be necessary eventually, the immediate step should involve internal reporting to the designated compliance personnel. The public records department is not relevant in this scenario as they do not deal with the management or resolution of AML concerns.