Red Flags in AML/CFT
Red flags in Anti-Money Laundering /Combating the Financing of Terrorism(AML/CFT) are indicators of potential illicit activities and include unusual transactions, secretive clients, Politically exposed Persons(PEP) , High risk Jurisdictions , Complex Ownership Structures and large cash transactions. These warning signs, which do not automatically confirm wrongdoing, trigger further investigation and may lead to the submission of a Suspicious Transaction Report to the relevant Financial Intellegence Unit (FIU). Following FATF guidance and local legislation, AML programs should ensure a risk-based model that reflects their threat landscape and regulatory environment, effectively highlighting any AML red flags. This should include suitable CDD Process, identifying customers for enhanced due diligence (EDD), Transaction Monitoring Solutions and sanctions, PEPs, and adverse media screening. FATF red flags in the cap...