Reporting obligations refer to the legal and regulatory requirements imposed on individuals, businesses or regulated entities to disclose specific information to designated authorities. These obligations typically require the submission of detailed reports related to Customer Due Diligence (CDD), suspicious activities, large transactions or other financial behaviors that may signal money laundering, fraud or terrorist financing in the areas of Know Your Customer (KYC), Anti-Money Laundering (AML) and financial compliance.

These obligations vary depending on the jurisdiction and the type of entity involved but commonly include filing Suspicious Activity Reports (SARs), Currency Transaction Reports (CTRs) and periodic compliance assessments. Regulatory bodies such as the Financial Crimes Enforcement Network (FinCEN) in the United States or the Financial Conduct Authority (FCA) in the United Kingdom set out clear guidelines for what must be reported, when and by whom.

The purpose of reporting obligations is to enable regulators and law enforcement agencies to monitor financial systems, detect potential criminal activity and ensure that financial institutions operate with transparency and accountability. Failure to meet these obligations can lead to significant consequences, including fines, sanctions, license revocation or reputational damage. Therefore, understanding and adhering to reporting obligations is a critical component of any compliance program.