Navigating AML flags for non-standard transactions

asked by u/wkim · 2d · 3 answers

Been seeing a lot more scrutiny on accounts with irregular transaction patterns, even if the individual amounts aren't huge. Specifically, multiple small transfers to various international payees, followed by a larger inbound. It's becoming harder to distinguish legitimate, if unconventional, trading activity from potential layering. Are others experiencing a tightening of what triggers an AML flag, especially concerning pattern recognition vs. individual transaction size? How are you documenting these for your FI to avoid account freezes?

Join the full discussion

Top answers

  • u/takin2539· 17 pts· 2d

    Absolutely, the compliance departments are definitely tightening the screws. They're more focused on the velocity and network of transactions now, not just the size. It's a pain for anyone running a legitimate, but complex, operation.

  • u/wkim· 5 pts· 2d

    Absolutely, the tightening is palpable. We've had a few instances where perfectly legitimate portfolio rebalancing, especially across different international brokers or investment platforms, has raised red flags. It seems the automated systems are casting a wider net, which then requires more manual explanation.

  • u/bsantoso· 0 pts· 2d

    Agreed. The 'smurfing' red flag is hitting even legitimate activity now. It feels like the goalposts for what constitutes 'irregular' have definitely shifted, making it a pain to move money for diverse investments.

Related questions