What to tag bank transfer as so it won't get flagged?

[sonato]

I wonder if banks are flagging account only if the number of transactions inbound increase or also outbound transactions?

Furthermore what would make the bank less suspiciuos to TAG the transactions as to avoid troubles with the bank?

Particular I think of the problems I read inside the mentor group with removed threads and also the Mister Tango s**t service thread where people have made lots of transaction in their bank account and the account got flagged as suspicious and more documents were required.

Any idea on how to avoid it?

 

[VESTANON]

The company setup should have at least one residence director in the possible country where you intend to execute,
This way the bank knows if any hiccups occur, feedback can be received...along side that a steady amount within the declared transaction threshold into the account wouldnt trigger any alarms, multiple transactions just below the above declared treshold would do just fine as well...

 

[Tax Cow]

1. Inbound, outbound transactions matter. Both, the count and amounts.

2. Source, destination matters. Both, the bank and the country.

3. Timing of payments.

a. If your payments are too frequent or suspiciously big: split between 2 or 3 banks. Re-use one set of legitimate contracts and invoices to double, triple your turnover.
b. While non-CRS business banking in Northen Cyprus seems easy, think of the fishy smell a payment to/from bears.
c. A typical service-based business recieves payments from its corporate clients on the 1st and 2nd week of a calendar month. Probably not a good idea to stand out here. The objective is to blend in with the common folk.

I'm also interested in this topic. Any advice welcome. Sometimes I even tell stories of how clueless I am to learn more

 

[Tax Cow]

Payment descriptions (and tags) are less significant. The only rule is that you're ready to prove that a payment is for what you say it is. A good idea is to use nonsense numbers and letters (contract references) so that you can always make up the story and the contract on the go.

If you already stated that something is "salary for June," you have less room to maneuver when you're audited.

 

[djaheim]

When you open an account there are questions you answer by providing information. These questions seem or look innocuous at the time but down the line they are what will come to haunt you easily based on what information you gave them. Its a norm for them to ask you, what is your expected turnover, number of transactions in and out expected and their "typical value". Does the company have any investments else where. All this information they key it in their systems and it AI paints a good picture of the businesss. So immediatly you go above the thresh hold by a certain % or number of transactions or values they giet flagged. Compliance latches on it, MLRO etc start demanding for more information before releasing the transactions. And obviously there are countries that a sanctioned so sending money there is a red flag guaranteed like cuba, sudan, iran to mention a few. Then there are also countries that are considered high risk and they genarally require more information.

 

[VESTANON]

When you open an account there are questions you answer by providing information. These questions seem or look innocuous at the time but down the line they are what will come to haunt you easily based on what information you gave them. Its a norm for them to ask you, what is your expected turnover, number of transactions in and out expected and their "typical value". Does the company have any investments else where. All this information they key it in their systems and it AI paints a good picture of the businesss. So immediatly you go above the thresh hold by a certain % or number of transactions or values they giet flagged. Compliance latches on it, MLRO etc start demanding for more information before releasing the transactions. And obviously there are countries that a sanctioned so sending money there is a red flag guaranteed like cuba, sudan, iran to mention a few. Then there are also countries that are considered high risk and they genarally require more information.

@djaheim well said and elaborated, the information provided prior to the bank account going live must be adhered to strictly...for longevity, payments into the acct should maintain the intial incoming transaction criteria, incoming amounts split,transactions should be abit infrequent from time to time, an acct manager, if a Ltd Company is attached, a minimal presence + local based activities can be executed..

Setup shouldnt be executed in sanctioned zones...RED HERRING

 

[sonato]

c. A typical service-based business recieves payments from its corporate clients on the 1st and 2nd week of a calendar month. Probably not a good idea to stand out here. The objective is to blend in with the common folk.

That's something I can work with, thank you very much. Will have more questions very soon I will post here.

Setup shouldnt be executed in sanctioned zones...RED HERRING

What does RED HERRING means?

 

[VESTANON]

@sonato A Red Herring as per the case in question, is that certain countries have been listed as sanctioned countries, with regards to banking and financial undertakings, but that doesnt neccessarily mean in Reality, that anonymous financial activities arent carried out and executed under the radar....Atimes The Obvious Becomes The Most Appropriate...