Following the cash laundering purple flag indicator pointers set out by the FATF is an efficient place to begin.
Crimson flag indicators associated to transactions can contain funds which can be made in small quantities, or in repeated portions that fall below a reporting threshold. Alarm bells can be raised if funds are despatched to a newly created or beforehand inactive account.
Transaction patterns can even rouse suspicion — particularly if the deposits made are inconsistent with a buyer’s profile.
Different indicators can concern senders and recipients, irregularities with regards to the supply of funds or wealth, and suspicious circumstances associated to geography — equivalent to if a buyer’s funds originate from, or are despatched to, an change “that isn’t registered within the jurisdiction the place both the client or the change is situated.”
These pointers are detailed and complete — and are available full with case research that powerfully illustrate the kinds of eventualities that monetary establishments must be on the lookout for.