Suspicious activities refer to any transactions, behaviors or patterns that appear unusual, inconsistent with a customer’s known profile or potentially indicative of Financial Crime.

These activities are a key focus in Anti-Money Laundering (AML) and Know Your Customer (KYC) Compliance programs, as they may signal attempts to disguise illicit funds, finance terrorism or commit Fraud.

Examples of suspicious activities include sudden large cash deposits, complex or unexplained transfers between unrelated entities, inconsistent transaction patterns, use of High Risk Jurisdictions and efforts to obscure the identity of beneficial owners. Suspicious behavior may also involve reluctance to provide required information, submitting false or forged documents or conducting transactions just below reporting thresholds to avoid detection.

Under AML regulations, financial institutions and regulated entities are required to detect, investigate and report suspicious activities to their country’s Financial Intelligence Unit (FIU), such as through a Suspicious Activity Report (SAR) in the United States.