A customer uses unusual or suspicious identification documents that cannot be readily verified.Potentially Suspicious Activity That May Indicate Money Laundering Customers Who Provide Insufficient or Suspicious Information Closer scrutiny should help to determine whether the activity is suspicious or one for which there does not appear to be a reasonable business or legal purpose. The mere presence of a red flag is not by itself evidence of criminal activity. The following examples are red flags that, when encountered, may warrant additional scrutiny. Management’s primary focus should be on reporting suspicious activities, rather than on determining whether the transactions are in fact linked to money laundering, terrorist financing, or a particular crime. The advisories and guidance can be found on FinCEN's website.ģ02 Refer to SAR Advisory Key Terms. In order to assist law enforcement in its efforts to target these activities, FinCEN requests that banks check the appropriate box(es) in the Suspicious Activity Information section and include certain key terms in the narrative section of the SAR. FinCEN issues advisories containing examples of 'red flags' to inform and assist banks in reporting instances of suspected money laundering, terrorist financing, and fraud. Although these lists are not all-inclusive, they may help banks and examiners recognize possible money laundering and terrorist financing schemes.

The following are examples of potentially suspicious activities, or 'red flags' for both money laundering and terrorist financing. APPENDIX F: MONEY LAUNDERING AND TERRORIST FINANCING 'RED FLAGS'

Suspicious activity