There are a range of indicators to help you identify potential money laundering activity, ranging from suspicious customer behaviour, international transactions, larger than normal transactions and suspicious transactions.
The presence of a single indicator may not necessarily raise a suspicion but could warrant further monitoring and examination. Multiple indicators are more likely to result in a suspicion being formed.
1. Suspicious customer behaviour
Suspicious customer behaviour that may be an indicator of money laundering include:
- refusing to show identification.
- unusual business account behaviours such as frequent changes of address, phone numbers, etc.
- unusual desire for anonymity or discretion in their affairs
- unusual interest in internal controls and processes
- use of false identification to conduct transactions.
2. International transactions
International transactions that may be an indicator of money laundering include:
- high-value cash deposits to pay for international funds transfers.
- high-value international funds transfers to/from Australia with no apparent business or other reason
- same ordering customer sending international funds transfers to multiple beneficiaries.
- significant volume of international funds transfers conducted in a short period of time.
3. Larger than normal transactions
Large transactions that may be an indicator of money laundering include:
- large cash deposits and withdrawals
- new customer attempting large transactions.
- regular large cash deposits made into a remitter’s accounts by the same third party, who does not appear to be directly linked to the remittance business.
4. Suspicious transactions
Unusual transactions that may be an indicator of money laundering include:
cash withdrawals conducted at various bank branches and/or ATMs on the same day.
- multiple cash deposits at various banks and branches
- multiple customers sending international funds transfers to the same overseas beneficiary.
- structuring of cash deposits and withdrawals to avoid reporting requirements.
- undertaking transactions which appear inconsistent with their profile and/or transaction history.
- use of third parties to carry cash, deposit, or withdraw funds.
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