Red Flags of Money Laundering

There are multiple instances when a forensic accountant is required to look into the claims of Money Laundering. Though, there are many softwares that do this work for the bankers, all the businesses may not require the software and Money Laundering is a common phenomenon. In such cases this guideline helps to understand the transactions for the possibility of money laundering.

  • Client reluctant to provide complete information on identity or occupation if asked
  • Client uses unusual or suspicious identification documents that cannot be readily verified
  • Background differs from that which would be expected based on information provided and activities
  • Home/Business telephone is disconnected or wrong
  • Makes frequent or large transactions with no records
  • Efforts to avoid reporting or record keeping requirement
  • Tries to influence an employee for not filing required reports or asks not to maintain required records.
  • Is reluctant to provide information needed to file a mandatory report, to have the report filed, or to proceed with a transaction after being informed that the report must be filed
  • Is reluctant to furnish identification when obtaining a cheque payout
  • Asks to be exempted from reporting or record-keeping requirements
  • Asks for several cheques to be made below the INR 20,000 / specified threshold
  • Uses multiple loyalty scheme cards with no apparent purpose other than to manipulate records of play.
  • A rapid increase in the size and frequency of sessions with no corresponding explanation
  • Inability to track the true owner of funds being played
  • Significant turnover in large denomination bills that would appear uncharacteristic given players “story”/ (employment etc).