Red flags specific to money service businesses

In addition to other red flags, we have identified the following specific red flags relevant to our business and industry:

• Customer requests a transaction at a foreign exchange rate that exceeds the posted rate.
• Customer wants to pay transaction fees that exceed the posted fees.
• Customer exchanges currency and requests the largest possible denomination bills in a foreign currency.
• Customer knows little about address and contact details for payee, is reluctant to disclose this information, or requests a bearer instrument.
• Customer wants a cheque issued in the same currency to replace the one being cashed.
• Customer wants cash converted to a cheque and you are not normally involved in issuing cheques.
• Customer wants to exchange cash for numerous postal money orders in small amounts for numerous other parties.
• Customer enters into transactions with counter parties in locations that are unusual for the customer.
• Customer instructs that funds are to be picked up by a third party on behalf of the payee.
• Customer makes large purchases of traveller’s cheques not consistent with known travel plans.
• Customer makes purchases of money orders in large volumes.
• Customer requests numerous cheques in small amounts and various names, which total the amount of the exchange.
• Customer requests that a cheque or money order be made out to the bearer.
• Customer requests that a large amount of foreign currency be exchanged to another foreign currency.
• Customer purchases a large volume of money orders and changes payment type to avoid reporting requirements.