How banks freeze accounts - video explanation

[12345]

Hi I wanted to share this great video from AML employee, good information on avoiding freezing of your bank account


Red flags
1. Lots of transactions just below the reporting limit (10-15k eur)
2. Changing account details and making large transfer afterwards (also in order to prevent account takeover)
3. Unusual spending pattern - for example person with low income or no job has transactions for 5* hotels, luxury goods etc
4. Low buyers diversity - business that operates in a niche where it should have variety of customers but has only a few of them
5. Disproportionate flow-through - credits total and debits total are equal in a business niche where it doesn't make sense
6. High risk countries - transactions with tax havens, countries with high bank secrecy, countries exposed to financial crime
7. Immediate withdrawal to private wallets - immediate withdrawals after receiving each transfer to a different account
8. Many cash transactions
9. Sudden use of multiple sub accounts
10. Frequent crypto transactions

 

[blancmon229]

12345 said:
Hi I wanted to share this great video from AML employee, good information on avoiding freezing of your bank account


Red flags
1. Lots of transactions just below the reporting limit (10-15k eur)
2. Changing account details and making large transfer afterwards (also in order to prevent account takeover)
3. Unusual spending pattern - for example person with low income or no job has transactions for 5* hotels, luxury goods etc
4. Low buyers diversity - business that operates in a niche where it should have variety of customers but has only a few of them
5. Disproportionate flow-through - credits total and debits total are equal in a business niche where it doesn't make sense
6. High risk countries - transactions with tax havens, countries with high bank secrecy, countries exposed to financial crime
7. Immediate withdrawal to private wallets - immediate withdrawals after receiving each transfer to a different account
8. Many cash transactions
9. Sudden use of multiple sub accounts
10. Frequent crypto transactions
Click to expand...

Nice summary thanks. Although, I think there is a study that states AML + KYC only prevents 0.1% of financial crimes. So their AI can flag transactions all they want, in the end of the day it just is annoying and doesn't prevent anything.

https://www.ledgerinsights.com/anti-money-laundering-has-less-than-1-impact-on-crime-at-what-cost/

 

[jafo]

blancmon229 said:
Nice summary thanks. Although, I think there is a study that states AML + KYC only prevents 0.1% of financial crimes. So their AI can flag transactions all they want, in the end of the day it just is annoying and doesn't prevent anything.

https://www.ledgerinsights.com/anti-money-laundering-has-less-than-1-impact-on-crime-at-what-cost/
Click to expand...

Thank you for sharing!

Here's a video on the topic too:

https://www.reddit.com/r/nokyc/comments/rwltpg

 

[wellington]

Lol, every week we do tens of transactions for vendors, staff etc and some of the transactions are low hundreds of euro's.

If 'numerous transactions' = laundering then they must have a stack of paperwork on our operation lol.

We don't keep funds liquid idle in account(s).

This applies to commercial, and even personal (me).

Even when it comes to say vendor payments/contractors (stablecoins) it's always in a new wallet because we've experienced fresh wallet(s) or prior used wallets be drained (cost something like 60,000$ in 2021).