Monitoring and Reporting of Suspicious Transactions
Suspicious transactions are transactions that are inconsistent with a customer’s known, legitimate activities or with the normal business for that type of account.
The KYC policy/procedures should provide guidelines for recognizing such transactions. This should be backed up by training to ensure that employees understand how to implement these guidelines. Many banks also use software to identify such transactions.
Click here to see a sample list of suspicious transactions. (Please note that this is not an exhaustive list.)