Welcome back!
Today’s topic is Money Laundering Red Flags
at branches of a bank.
Money Laundering starts with placement stage
and placement happens at branches of banks
especially, those branches where customer
base is more.
The frontline officers at the branch should
be vigilant enough to catch such red flags.
By experience, front line officers of certain
major banks have given below guidance.
1. Customer does not want correspondence to
be sent to home address and inquire on hold
mail facilities.
2. Customer pays for services or products
using financial instruments, such as money
orders or traveller's cheques, or any such
instrument with unusual symbols, stamps or
notes.
3. Customer provides information that front
line officer believe is unreliable.
4. Customer offers the frontline officer money,
gratitude's or unusual favours for the provision
of services that may appear unusual or suspicious.
5. Customer is accompanied and watched.
6. Customer shows uncommon curiosity about
internal systems, controls and policies of
the bank.
7. Customer presents confusing details about
the transaction or knows only few details
about its purpose.
8. Customer over justifies or explains the
transaction.
9. Customer is nervous and is unable to answer
questions asked with regard to the transaction.
10. Customers home or business telephone number
has been disconnected or there is no such
number when an attempt is made to contact
customer shortly after opening account.
15. Customer appears to be acting on behalf
of a third party, but does not tell you.
11. Customer insists that a transaction be
done quickly or presents that he/she is a
very busy person.
12. Inconsistencies appear in the customers
presentation of the transaction.
13. The transaction does not appear to make
sense or is out of keeping with usual or expected
activity for the client.
14. During conversations it is found that
customer has recently established a series
of new relationships with different financial
institutions.
15. Customer attempts to develop close rapport
with staff.
16. Customer presents documents which looks
to be forged or deliberately photocopied in
lighter version or images of other documents
are clearly seen on the photocopies.
Going ahead, let us understand how to deal
with such customers?
Well the front line officers deal with such
customers in the following way.
1. The frontline officers would not answer
much of their internal system details to the
customer if the customer is found suspicious.
2. Frontline officers should make note of
observations in the K.Y.C column of account
opening of their suspicion.
3. If there is no K.Y.C column in the account
opening forms, at least attach the observations
written on a plane paper.
4. Probe further, in case of doubts and make
observations.
5. If the customer tries to waste much of
your time, guide the customer to branch Manager.
Branch Managers are pretty well aware how
to handle.
6. Customer is a customer, do not try to become
friends with them.
7. Any offers from customers relates to high
level of suspicion and branch managers should
reports such instances to local police station.
8. Any un reliable information should be noted
in the observations.
9. Entity documents are forged or photocopy
is not clear, front line officers should and
must ask customer to bring the original documents
even if the documents are certified. If the
customer shows originals in electronic form
and makes sense, can be acceptable. However,
if the customer denies, route the customer
to branch manager.
10. Hold mail facility should be offered only
if sufficient reasons are provided and makes
sense with the profession of the customer.
That’s all for today.
Thank you.
Hope you all now have a fair idea about Money
Laundering red flags at branches and you may
now apply this knowledge to your day to day
work.
I will come back with more such structures
in K.Y.C Bytes.
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Have a nice day ahead.
Stay Tuned.
