Indicators Related to Customer
-
The client lives beyond his financial capabilities.
-
The client has a commercial activity not compatible with the averages recorded in this sector or with the financial ratios.
-
The client has checks that do not correspond with the volume of his sales (for example: unusual payments from unlikely sources).
-
The client has a history of changing accountants and account administrators annually.
-
The client does not know the whereabouts of the company records.
-
The company is incurring non-existing debts, or debts that have been paid but appear continuously in the current financial statements.
-
The company does not have employees, which is unusual in this type of activity.
-
The company pays unusual consultation fees to companies abroad, or the company’s records consistently reflect sales at less than the cost, which incurs losses to the company, and the company continues to provide illogical explanations for the losses.
-
There are discrepancies in the accounts supervised by the financial controller.
-
Failure to disclose the entire individual's income for the last tax year.
-
Seeking the help of many companies, corporate consultants and associated companies to audit the accounts.
-
The client takes a defensive stance when questioned, or over-justifies the deal, or recently establishes a series of new relationships with various financial entities, or provides money, gratuities, or an unusual preference for providing services that may appear unusual or suspicious.
-
The client attempts to convince the employee not to complete any documents required for the transaction, or has a history of changing billing accounts or accountants annually.
-
The client exchanges low denomination currencies for high ones.
Indicators Related to Transaction
-
The incompatibility of the loans provided by the shareholders with the company's commercial activity.
-
The presence of wrong data regarding commercial activity and the fact that they are not easily traced through the company's books.
-
The company paid huge sums to subsidiary companies or companies with similar control that do not fall within the company's normal commercial framework.
-
The company acquires personal and consumer assets (such as: boats, luxury cars, homes and private rural villas) while these transactions do not comply with the client's normal business practices or with the commercial activity of this particular sector.
-
The existence of unauthorized or improperly recorded transactions and insufficient audit trails, or structuring transactions in an orderly manner under the legal limit to avoid dealing with identification requirements, or maintaining regulatory records and reporting thresholds.
-
Completing transactions through intermediaries without an apparent reason, or the shareholders' loans do not correspond with the commercial activity.
-
The company makes large payments to subsidiaries or other entities within the group that do not appear in the normal course of business.
-
The permanent use of the personal bank account for commercial purposes, or opening a bank account that is used exclusively for depositing foreign currencies.
Indicators Related to Geographical Location
-
The company pays bills of organizations located in a country without adequate anti-money laundering laws and is known for its banking secrecy or as a safe tax haven.
