From the course: The ABCs of the Banking and Insurance Business: AML, KYC, the NAIC, IFRS, and More

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Suspicious activity monitoring

Suspicious activity monitoring

From the course: The ABCs of the Banking and Insurance Business: AML, KYC, the NAIC, IFRS, and More

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Suspicious activity monitoring

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- [Instructor] Suspicious activity monitoring is about identifying red flags, behaviors, or transactions that might indicate money laundering or other financial crimes. Some common red flags include customers attempting to break large transactions into smaller amounts, called structuring, unusual or sudden changes in transaction patterns, customers providing incomplete or suspicious identification documents, large, unexplained international wire transfers, and then buying large amounts of bank checks with cash. One real world example of this, in a recent case leading to a $3 billion fine from the US government, bank employees observed a customer's network of accounts had purchased more than $1 million in official bank checks, with cash, in a single day. The employee flagged this is problematic, but the bank as a whole failed to take sufficient action to foil the activity, which is what led to that $3 billion fine from the US government. Now, in addition to suspicious activity…

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