Areas or countries that have been deemed due to potential money laundering, drug activity, known high volume criminal activity, and/or potential for terrorist activity.
When the customer requests foreign currency or frequently exchanges small dollar denominations for larger bills or large dollar denomination for smaller bills.
What is Cash Conversion / Cash Refining?
Transactions with high volume, high frequency, within a short period of time (such as same day, consecutive days, and/or near consecutive days) to or from the same counterparties followed by a period of dormancy.
When the underlying originator / ultimate beneficiary of funds cannot be ascertained and is unverifiable.
When an entity's volume of transactions, remittances and/or source of funds are not consistent with the customer's line of business stated previously within internal bank records.
Illegal act of splitting cash deposits or withdrawals into smaller amounts, or purchasing monetary instruments, to stay under a currency reporting threshold.
What is Potential Structuring (Smurfing)?
This typology is used when a customer transfers or receives funds from foreign businesses or banks.
What is Offshore Activity?
Instances when the customer withdrawals funds from their account and the use of the funds cannot be ascertained.
What is Unknown Use of Funds?
Applies to persons who generally presents a higher risk for potential involvement in bribery and corruption by virtue of their position and the influence that they may hold.
What is Comingling of Funds?
Instances when the customer deposits funds into their account and the source of the funds cannot be ascertained.
What is Unknown Source of Funds?
Depending on the country, OFAC programs may freeze assets of embargoed countries, prohibit payment of funds to individuals and countries on the embargo list, or prohibit provision of services.
What is Sanctioned Countries?
A series of transactions between companies in which the amount of outward transactions and inward transactions roughly approximates one another, and does not provide real economic benefit to either company.
What is Circular Transactions / Round Tripping?
The process of disguising the proceeds of crime and moving value through the use of trade transactions in an attempt to legitimate their illicit origin.
What is Trade Based Money Laundering?