Anti-money laundering (AML) red flags are constantly changing so it is important for financial advisers to have a good idea of what to look for, says Strategi Group.
The firm has listed its top five red flags and says each one is a potential warning sign of a suspicious action or transaction that may involve money laundering.
Top 5 AML red flags:
- New clients who refuses to answer questions about themselves
- Clients trying to launder funds may carry out unusual transactions
- Transactions involving large amounts of cash or private funding could indicate money laundering
- Unexplained urgency to process a transaction
- Geographic concerns. If your firm is not local to the customer, why are they contacting you?
For more details about the top five red flags see Strategi Group’s post here.