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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.