Matthew works for an investment firm. If he has reasonable grounds to suspect that one of its customers is engaged in money laundering, he should first report his suspicions to the:

• A. firm's money laundering reporting officer.
• B. Gardaí.
• C. Central Bank.
• D. firm's secretary.

Answer: (A)

The main idea is that the Money Laundering Reporting Officer within a firm is the designated first point of contact for any suspected money laundering. When an employee has reasonable grounds to suspect such activity, they should report it to the MLRO so the firm can assess the situation, preserve confidentiality, and ensure the proper legal process is followed. The MLRO is responsible for determining whether an external Suspicious Activity Report should be filed with the Financial Intelligence Unit and for coordinating with authorities as required. Reporting directly to the Gardaí bypasses the firm’s internal controls and can compromise the process, while the Central Bank is the regulator and not the initial reporting channel, and the secretary has no role in handling AML suspicions.