Identifying suspicious transactions related to Offshore Business Activity

  • Use of letters of credit and other methods of trade financing to move money between countries where such trade is not consistent with the customer’s usual business.
  • Accumulation of large balances inconsistent with the known turnover of the customer’s business, and subsequent transfer to overseas accounts.
  • Frequent requests for travellers’ cheques, foreign currency drafts or other negotiable instruments.
  • Loans secured by obligations from offshore banks.
  • Loans to or from offshore companies
  • Transactions involving an offshore “shell” bank whose name may be very similar to the name of a major legitimate institution.
  • Unexplained wire transfers/electronic funds transfers by client on an in-and-out basis.
  • Use of a credit card issued by an offshore bank.