Typologies & Red Flags

Defensive risk-pattern pages, source guidance and red-flag interpretation.

1. Canonical review pattern#

Every typology should answer seven questions:

  1. What risk is being described?
  2. Why does it matter for AML/CFT/CPF?
  3. Which observable indicators may appear?
  4. Which innocent explanations should be tested?
  5. Which evidence is relevant?
  6. Which controls are proportionate?
  7. When and to whom should the case be escalated?
indicator
→ context
→ evidence
→ alternative explanation
→ unresolved discrepancy
→ control or escalation

2. Core typology library#

Topic Primary review focus
Money Mules and Structuring Customer and transaction patterns, third-party control and fragmented flows
Human Trafficking and Migrant Smuggling Victim-centred indicators, networks, payments and safeguarding escalation
Environmental Crime Proceeds, trade, licensing, geography and corporate opacity
Trade-Based Money Laundering Consistency of goods, documents, counterparties, routes and payments
Professional Enablers and Professional Money Laundering Intermediary role, authority, ownership, client accounts and recurring networks
Sanctions Evasion Typologies Ownership/control, representation, trade, payment, geography and timing
Real Estate, Luxury Assets and Art Risk High-value assets, SoW/SoF, valuation, intermediaries and ownership
Crypto / VASP AML Wallet attribution, service risk, rapid movement, SoF and regulatory status
Sanctions / TFS / CPF Legal scope, targeted financial sanctions and PF control boundaries

3. Red-flag discipline#

A red flag should be recorded with:

  • the observed fact;
  • source and retrieval date;
  • customer or transaction context;
  • possible innocent explanation;
  • corroborating or contradictory evidence;
  • relevance to policy or legal trigger;
  • required next step;
  • decision owner.

Avoid universal severity labels that pretend one indicator has the same meaning in every sector, customer and jurisdiction. Risk arises from the combination and quality of facts.

4. What this section excludes#

AML Bible materials do not provide:

  • step-by-step laundering or evasion sequences;
  • threshold-avoidance instructions;
  • methods for concealing ownership, identity or payment purpose;
  • recipes for exploiting specific products, institutions or jurisdictions;
  • automatic guilt scores based on red flags.

The purpose is detection, documentation and responsible escalation.

5. Typology output#

Typology considered:
Observed indicators:
Customer / transaction context:
Sources and evidence:
Innocent explanations considered:
Contradictions:
Confidence and limitations:
Relevant control:
Required escalation:
Decision owner:

Pages in This Category#

Real Estate, Luxury Assets & Art Risk

Sanctions Evasion Typologies

Professional Enablers & Professional Money Laundering

FATF Mutual EvaluationsFATF mutual evaluations are peer reviews of countries' AML/CFT/CPF systems. They help explain country-level risk beyond simple black-list/grey-list labels.
National Risk AssessmentA National Risk Assessment (NRA) is a country's structured assessment of money laundering and terrorist financing risks. It helps explain sectoral risks, threat patterns, vulnerabilities and control priorities.
SAR / STR Source GuidanceGlossary: STR · Suspicious activity reports and suspicious transaction reports are jurisdiction-specific. A public AML Bible should not provide local filing instructions unless they are verified for a specific jurisdiction and kept current. This...
Transaction Monitoring SourcesTransaction monitoring detects unusual or potentially suspicious activity by comparing transactions against expected behaviour, risk factors, rules, scenarios and typology indicators. This page maps source materials only; it...
Money Mules & StructuringMoney mule and structuring indicators are common AML red-flag categories. This page presents defensive indicators and evidence concepts only. It should not be used to teach avoidance of controls.
Environmental Crime TypologiesEnvironmental crime can generate significant illicit proceeds and can overlap with corruption, organised crime, trade fraud, tax crime and cross-border smuggling. This page provides defensive AML typology context only.
Human Trafficking / SmugglingHuman trafficking and migrant smuggling are serious predicate-crime areas for AML/CFT. This page provides defensive typology context and source mapping only.
Red Flags LibraryThis library gives practical indicators that should increase risk, trigger EDD or support MLRO escalation. Red flags are not proof of wrongdoing. They are prompts for deeper review.
Sector Risk LensA defensive sector-risk lens for AML/KYC/KYB review, mapping sectors to risk questions, evidence needs and control objectives without misuse instructions.

See Also#

References#