AML Red Flags

AML red flags are warning indicators that suggest the possibility of money laundering or suspicious activity. These may include unusual transaction patterns, inconsistent customer information, high-value cash deposits, and activities involving high-risk jurisdictions. Identifying AML red flags is a fundamental aspect of monitoring and investigating transactions to prevent financial crimes.

Compliance teams must be trained to recognize red flags and respond appropriately by conducting further investigations or escalating the issue. Regularly updating red flag criteria ensures that the organization stays aware of new money laundering tactics and adapts its detection strategies accordingly.