High-Risk Sectors in Know Your Customer Profession

Cryptocurrency exchanges = High risk of money laundering and terrorist financing Cash-intensive businesses = Higher risk due to difficulty in tracking cash transactions Non-profit organizations = Potential risk of being used as a cover for illegal activities Precious metal dealers = Risk of being used for money laundering due to high value and easy transportability

Enhanced due diligence (EDD) = Increases scrutiny on high-risk clients Transaction monitoring systems = Helps detect suspicious activities in real-time Customer risk rating = Determines the level of monitoring required for a client Regular compliance training = Ensures staff are aware of latest regulations and procedures

CDD analysts = Individuals who assess the risk of clients' business activities Transaction Monitoring analysts = Professionals who monitor transactions for suspicious activities Risk rating = Assignment of a level of risk to a client's business activities Mitigating factors = Strategies used to reduce the assessed risk level

<p>Transport sector = Complex logistics chains with different parties Emerging cryptocurrency sector = Potential for hiding money across national borders Agricultural sector = Specific characteristics Commercial real estate = Multiple layers of transactions</p> Signup and view all the answers

<p>Over and under-invoicing = Deliberately misrepresenting the value of goods Overbilling = Inflating the value of goods Imitation transactions = Creating false invoices and bills of lading Multiple billing technique = Creating multiple invoices for a single shipment or transaction</p> Signup and view all the answers

<p>Customer's statement does not fit customer profile = Reported to Financial Intelligence Unit Customer refuses to provide statement or supporting documents = Action can be taken Money coming from high-risk sector = Triggers a suspicious transaction report Money going to high-risk sector = Triggers a suspicious transaction report</p> Signup and view all the answers

<p>Too much freight and too little time = Difficulty in monitoring products and documents Complex logistics chains with different parties = Exploited to disguise transactions and manipulate money flows Limited oversight measures and weak regulations = Situation worse in some regions Continuous process of adjustment and improvement = To counter money laundering in transportation sector</p> Signup and view all the answers

<p>Vehicles, works of art, precious metals = Difficult to combat due to risks involved Luxury goods, precious commodities = Moved across borders while concealing origin and purpose of money Valuable assets misrepresenting the type or quality of items to manipulate prices = Facilitate illicit money transfers Assets combined with legitimate trading activities to make detection harder = Imitation transactions</p> Signup and view all the answers