A high volume of incoming wire transfers generates an alert about a client. The funds are immediately debited by cash withdrawals and outgoing wire transfers.
Which information should be reviewed first to investigate this alert/case?
Click on the arrows to vote for the correct answer
A. B. C. D.C
https://tier1fin.com/alessa/webinars/fraud-risks-wire-transfers/When a high volume of incoming wire transfers generates an alert about a client and the funds are immediately debited by cash withdrawals and outgoing wire transfers, the first information that should be reviewed to investigate this alert/case is the customer's account activity.
Option D, Account activity, is the correct answer because it provides crucial information about the transactions that have taken place in the account, such as the origin of the incoming wire transfers, the beneficiaries of the outgoing wire transfers, and the amount and frequency of the cash withdrawals. Analyzing the account activity helps the AML investigator to determine whether the transactions are consistent with the customer's profile and expected behavior or whether they indicate suspicious activity, such as money laundering or terrorist financing.
Open source information and adverse media search are useful tools in the investigation process, but they are not as critical as the customer's account activity in this case. Open source information refers to publicly available information, such as news articles or social media posts, that can provide additional context about the customer and their business activities. Adverse media search refers to a search of negative news or information about the customer, such as past criminal activity or regulatory sanctions. These sources may be helpful in corroborating the suspicious activity identified through account activity analysis, but they do not provide the detailed transactional information necessary for determining whether the activity is suspicious.
Customer profile information is also important in investigating a suspicious activity alert, as it provides information about the customer's risk profile, expected transactional behavior, and source of funds. However, in this scenario, the account activity is the most critical piece of information for determining whether the customer's transactions are suspicious.
In conclusion, the correct answer is D, Account activity, as it provides the most critical information for investigating a suspicious activity alert related to a high volume of incoming wire transfers and immediate debits by cash withdrawals and outgoing wire transfers.