Credit transactions

Red flags include:

  • A transaction is made to appear more complex than it needs to be by use of nonsensical terms such as emission rate, prime bank notes, standby commitment, arbitrage or hedge contracts

  • Customer requests loans made to offshore companies or secured by obligations in offshore banks

  • Customer suddenly pays off large problem loan, without any obvious source of funds

  • Customer collateralises loan with cash or certificates of deposit

Next Topic: Commercial account activity

Previous Topic: Safe deposit activity

Get the Book & Pass First Time!

Includes all the study notes, the mock exam and detailed explainations of the answers

Get the AML Book & Pass First Time - Instant PDF Download