There has been a jump in the number of suspicious financial transactions. The RBI in its annual report said that banks reported a six fold jump in suspicious transactions from 61,361 in 2015-16 to 3.61 lakh in 2016-17. The number was 45,858 in 2014-15, according to the RBI report.
The Financial Intelligence Unit which was set up in 2004 has released a list in which it mentions the transactions that be considered suspicious by banks and other entities.
Here is the list:
- False identification documents, identification documents which could not be verified within reasonable time and accounts opened with names very close to other established business entities
- Large number of accounts having a common account holder, unexplained transfers between multiple accounts with no rationale
- Accounts opened with names very close to other established business entities
- Use of different accounts by client alternatively
- Unusual activity compared with past transactions
- Sudden activity in dormant accounts
- Value of transaction just under the reporting threshold amount in an apparent attempt to avoid reporting, large sums being transferred from overseas for making payments, inconsistent with the clients apparent financial standing, inconsistency in the payment pattern by client
- Source of funds are doubtful, nature of transactions inconsistent with what would be expected from declared business, activity inconsistent with what would be expected from declared business, value inconsistent with the client's apparent financial standing
- Appears to be case of insider trading, transactions reflect likely market manipulations, suspicious off market transactions
- Frequent purchases of drafts or other instruments with cash