Ways to Identify Potential Money Laundering Activity
The ways to identify potential money laundering activity that matter most in practice are the things a person notices, not the things a system flags.
Behaviour around a transaction is the clearest signal. Reluctance to provide identification, or documents that do not quite match. Vagueness about the source of funds. Unusual knowledge of reporting thresholds, or a request to keep an amount just below one. Third parties present who appear to be directing the customer. Unusual urgency or pressure.
Transaction patterns matter too. Activity inconsistent with the customer’s stated business. Structuring across accounts, days or branches. Funds arriving and leaving quickly with no apparent purpose.
None of these is proof of anything. Each is a reason to report a suspicion, which is what the obligation asks of you.
AUSTRAC receives suspicious matter reports. This is general information rather than legal advice, and obligations vary by state and territory.
See Sentrient’s AML CTF training course and incident reporting software.
4 Ways to Identify Potential Money Laundering Activity
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 suspicion but could warrant further monitoring and examination. Multiple indicators are more likely to result in a […]
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