Following the guidelines for money laundering alert indicators established by the FATF is a good place to start.
Alert indicators related to transactions may involve payments made in small amounts or in repeated amounts that fall below a reporting threshold. Alarm tones can also be triggered if funds are sent to a newly created or previously inactive account.
Transaction patterns can also arouse suspicion & mdash; especially if the deposits made do not match a client’s profile.
Other indicators may relate to senders and receivers, irregularities in the source of funds or wealth, and suspicious circumstances related to geography & mdash; for example, if a client’s funds originate from an exchange or are sent to an exchange that is not registered in the jurisdiction where the client or exchange is located. & rdquo;
These guidelines are detailed and comprehensive & mdash; and come with case studies that powerfully illustrate the types of scenarios financial institutions should be looking for.