Red Flags of Money Laundering

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Indiaforensic Media
Indiaforensic Media
Forensic Accounting in India started with one word - Indiaforensic.

Certified Anti Money Laundering Expert is one of the oldest courses in India on the subject of Anti Money Laundering. Additionally, Red Flags identification is one of the biggest learning outcomes of this program.

There are multiple instances when a Certified AML Expert is required to monitor the banking transactions to identify the red flags. Though there is much software that does this work for bankers, all businesses may not require the software, and Money Laundering is a common phenomenon. In such cases, this guideline helps to understand the transactions for the possibility of money laundering.

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Red Flags of Money Laundering

The KYC Manual of Indiaforensic provides an exhaustive list of red flags related to different schemes of money laundering. Moreover, the transaction monitoring teams need these lists for quick reference. there can be more than one red flag indicators in a transaction

Following is the list of frequently seen red flags in KYC.

  • The client is reluctant to provide complete information on identity or occupation if asked
  • The client uses unusual or suspicious identification documents that cannot be readily verified
  • Background differs from the declarations and also from activities
  • Provides a wrong or non-existing Home or Business Telephone Number
  • Makes frequent or large transactions with no records
  • Efforts to avoid reporting or record keeping requirement
  • Tries to influence an employee for not filing required reports or asks not to maintain required records.
  • Is reluctant to provide the information needed to file a mandatory report, to have the report filed, or to proceed with a transaction after being informed that the report must be filed
  • Is reluctant to furnish identification when obtaining a cheque payout
  • Claims exemption from reporting or record-keeping requirements
  • Issues several cheques below the INR 20,000 or the threshold reporting limits.
  • Uses multiple loyalty scheme cards with no apparent purpose other than to manipulate records of play.
  • A rapid increase in the size and frequency of sessions with no corresponding explanation
  • Inability to track the true owner of funds being played
  • Significant turnover in large denomination bills that would appear uncharacteristic given players’ “story”/ (employment etc).

If you are looking for more information about aml red flags examples or would like to pursue a career in KYC or AML Domain then you can contact the education team of Indiaforensic at +919766594401. Additionally, you can also email us at education [at] indiaforensic [dot] com

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