AML red flags are warning signs that may indicate suspicious or potentially criminal financial activity. Examples include:
- Unusual transaction patterns
- Large unexplained cash deposits
- Complex ownership structures
- Frequent international transfers without business justification
- Transactions inconsistent with customer profiles
- Use of high-risk jurisdictions
- Reluctance to provide identification documents
- Rapid movement of funds
AML professionals use red flags to identify activity requiring enhanced review or escalation.
