A Regulatory Authority - when speaking to Anti-Money Laundering (AML) and Know Your Customer (KYC) - is an official agency or governing body responsible for establishing, enforcing and overseeing AML regulations within a jurisdiction. 

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These authorities mandate that financial institutions and regulated entities follow AML compliance standards to detect, prevent and report money laundering activities. 

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On an international level, the Financial Action Task Force (FATF) is the primary organization dedicated to combating money laundering and terrorist financing. Comprising 37 member jurisdictions and two regional organizations, FATF sets global AML standards and regularly updates recommendations for member states. Its standards guide financial institutions worldwide to implement KYC identification processes, due diligence measures, ongoing monitoring and reporting protocols to detect and prevent financial crime.

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In Europe, AML regulations are enforced by several key regulatory bodies. Notably, the European Union’s Anti-Money Laundering Directives (AMLDs), including 5AMLD and 6AMLD, outline specific compliance obligations, such as requirements for cryptocurrency regulation, prepaid cards, beneficial ownership transparency, and harmonized definitions of money laundering offenses. 

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For the United Kingdom, the Financial Conduct Authority (FCA) serves as the primary regulatory authority overseeing the financial industry, including anti-money laundering (AML) efforts and the prevention of financial crimes like terrorist financing. As an independent, non-governmental body with the authority to institute and implement AML standards, as well as to conduct investigations, the FCA's overarching objectives are to protect the integrity and stability of the market - as well as to encourage fair competition. The FCA ensures that financial institutions in the UK operate within the bounds of AML regulations by enforcing risk assessments, monitoring for suspicious activities and mandating the reporting of such activities to the appropriate authorities. 

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In the United States, the Financial Crimes Enforcement Network (FinCEN) under the Department of the Treasury is the primary AML regulatory authority. FinCEN enforces the Bank Secrecy Act (BSA) and other AML requirements, mandating financial institutions to develop AML programs, perform KYC due diligence, file Suspicious Activity Reports (SARs) and track high-value transactions. The Office of Foreign Assets Control (OFAC) is another crucial authority, enforcing economic and trade sanctions that prohibit financial institutions from transacting with sanctioned individuals and entities.

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Within Asia, two key regulatory authorities that we can look to are the Monetary Authority of Singapore (MAS) and the Hong Kong Monetary Authority (HKMA). The MAS serves as both the country’s central bank and the primary regulator for its financial industry - responsible for implementing and enforcing monetary policy, supervising financial institutions and maintaining stability in the financial markets. The MAS also sets and enforces policies aimed at preventing money laundering and terrorist financing, imposing fines on institutions that fail to adhere to these standards. With the HKMA, it regulates Hong Kong’s financial sector and oversees monetary policy to ensure the stability of its banking system. Under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance, HKMA enforces strict AML and Counter Terrorist Financing (CFT) requirements, mandating that financial institutions implement robust AML / CFT programs tailored to their specific risk profiles. These programs must include ongoing risk assessments, procedures for independent audits, employee training and screening, as well as strong compliance management. Each institution is also required to appoint a compliance officer with the authority to oversee its AML / CFT program and ensure proper handling of suspicious activity reports.

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