What are the red flags in customer due diligence?
Red flags in customer due diligence indicate that a client or their transactions may be involved in money laundering, terrorist financing, or other financial crimes. Some common red flags include:
• customers providing inadequate information regarding their identification
• customers hailing from high-risk jurisdictions
• adverse media screening indicating negative information about the customer
• customers undertaking large or unusual transactions
Check out this article to explore more red flags related to ML/TF.