The use of different ATMs, often in different countries, to withdrawal money.Immediately transferred funds out of prepaid card accounts after loading.Cash loading patterns in amounts just under reporting thresholds such as the $10,000 reporting threshold in the United States.Frequent third-party (rather than by the cardholder) cash loading onto prepaid cards.Several prepaid card accounts held by an individual customer with a single provider.Customers making an unusually large number of prepaid card transactions not commensurate with stated business activities or purchasing large volumes of prepaid cards.Clients asking suspicious questions about their prepaid cards or attempting to obstruct identity verification processes. ![]() The following are some of the red flags that prepaid cards are being used for money laundering: They can also load the cards with funds from one country and withdraw them in another, making it difficult to trace the source and destination of the funds.įinancial institutions must be vigilant for specific red flag indicators-including monetary and non-monetary-and ensure their identity verification mechanisms are able to spot potential criminal activities related to the money laundering risks of prepaid cards.
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