The AML / CFT Act contains a set of compliance obligations for “reporting entities”. Penalties for non-compliance with these obligations are massive and can be as high as $2m and/or up to 2 years in prison. The key to determine whether you have obligations under the AML / CFT Act is to understand the term reporting entity (RE). Once you establish you are a RE then you can start undertaking the necessary work to ensure you comply with the AML / CFT Act.