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RegTech & Reporting

MLRO - Money Laundering Reporting Officer

The named individual responsible for the AML programme of an obligated entity - receiver of internal disclosures, signer of SARs, and the regulator's first port of call.

Also known asNominated OfficerBSA Officer (US)Compliance Officer AML

Definition

The Money Laundering Reporting Officer (MLRO) - known in some jurisdictions as the Nominated Officer or BSA Officer - is the named individual responsible for the day-to-day operation of an obligated entity's AML/CFT programme. The MLRO receives internal suspicion disclosures, decides whether to file external SARs, and is the primary point of contact for the FIU and supervisor.

Core duties

  • Receive and assess internal suspicion reports.
  • File external SARs / STRs to the FIU when warranted.
  • Maintain the AML risk assessment and policies.
  • Oversee training, monitoring effectiveness and remediation.
  • Report periodically to the management body / board.

Regulatory anchor

AMLD4 Article 8(4) and Article 46 in the EU; FCA SYSC 6.3 in the UK; FinCEN BSA officer requirements in the US; the upcoming AMLR formalises a "compliance manager" role at management-body level alongside the operational MLRO.

Personal liability

MLROs increasingly face personal administrative - and in some jurisdictions criminal - liability for AML failures. Direct reporting lines to the board and sufficient resources are no longer governance niceties; they are personal-risk controls.