- March 25, 2023
- Posted by: Roger Walker
- Category: Business
As a business, how do you know what the signs of money laundering are? No business wants to suffer fines and reputational damage due to a lack of awareness of anti money laundering measures. So, what are some of the red flags to watch out for?
Secretive new customers – During the onboarding process, if new customers appear reluctant to answer questions, refuse to share personal identification details or act suspiciously, this could be a red flag that the new customer is associated with criminal activity.
Unusual fund sources – Any transactions that involve significant sums of cash or odd funding from private sources could be an indication that something is not legitimate. When crypto or cash is involved, these are harder to trace the original source. For advice on AML IDENTITY CHECK processes, go to W2 who provide AML IDENTITY CHECK services.
Strange transactions – This can be identified by looking at unusual patterns of behaviour on accounts. This might be anything that strays from the normal, expected behaviour and might include excessive cash deposits, sudden payments from a third party or the usage of foreign accounts, for example.
Odd connections – Geographical oddities are another signal to watch out for. Why would a customer be using a company that is nowhere near them geographically? The movement of money across geographical locations is a further red flag.
Negative media – If the customer has been the subject of negative media stories, this should also be a cause for concern. The person might be at a higher risk of money laundering activities. Adverse media screening is vital for this purpose.