3. Recognising red flags
Some sectors carry higher inherent risk
Certain sectors are considered higher risk for money laundering, not because everyone in them is doing anything wrong, but because of features that make laundering easier or harder to spot: cash-intensive businesses where turnover is difficult to independently verify, real estate, where large sums move in single transactions, and professional services, like law and accountancy firms, that can facilitate complex transactions and structures on a client's behalf.
If you work in, or with, a higher-risk sector, that context should inform how much scrutiny is proportionate, not create suspicion of every client by default.
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What financial crime and money laundering are
Customer due diligence and KYC
Recognising red flags
Reporting obligations
Putting it into practice