Anti-money laundering (AML) compliance is usually seen as a concern for banks, but a little-known federal obligation is catching out businesses far beyond the financial sector, according to Alessa.

Car dealers, jewellers, lawyers, estate agents and travel firms can all face a reporting duty the moment a customer pays more than $10,000 in cash.

Form 8300, the Report of Cash Payments Over $10,000 Received in a Trade or Business, is jointly administered by the Internal Revenue Service (IRS) and the Financial Crimes Enforcement Network (FinCEN). The businesses least likely to view themselves as subject to AML rules are often the ones most at risk of missing it.

The obligation applies to any person engaged in a trade or business, whether an individual, corporation, partnership, association, trust or estate. Unlike Currency Transaction Reports (CTRs), which are filed by banks and credit unions, Form 8300 targets businesses receiving large cash sums from customers.

Typical filers include dealers in vehicles, boats, furniture and jewellery, alongside pawnbrokers and legal professionals. Crucially, a firm does not need to be cash-heavy to be caught; a single large payment is enough.

The $10,000 threshold covers a single transaction or multiple related payments. Transactions within 24 hours are presumed related and must be combined, while payments spread further apart still count if the business knows, or should know, they form a connected series.

Cash is also defined broadly. It covers US and foreign notes and coins, plus cashier’s cheques, money orders and traveller’s cheques with a face value of $10,000 or less when used in designated reporting transactions or to sidestep reporting.

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