Words in the transfer title that can lead to bank checking

In fresh years, bank checks and freezing accounts It has become increasingly common, and the reasons for these actions rise much controversy. Although not all bank interaction involves risk, any of the words we put in the transfer title may rise suspicions about banking systems. Why is this happening, and what words can origin control or even blocking an account? It is worth looking closer to avoid unpleasant consequences.

Why do banks check the transfers?

According to the law, banks are required to monitor their clients' financial transactions under the alleged ‘funding arrangements’. Money laundering and terrorist financing programme (AML/CFT). This programme requires financial institutions to closely supervise transactions to prevent the usage of the banking strategy for criminal activities.

For this reason, banks pay peculiar attention to any transfers that may indicate illegal activity or irregularities. Monitoring algorithms Transfers, together with employees liable for assessing suspicious transactions, shall analyse various elements specified as transfer amounts, titles and recipients. If disturbing elements are detected, they may decide to block the transfer or even frost the account.

What are the words in the title of the transfer suspicious?

There are a number of words and phrases that can trigger a reaction of the banking strategy and lead to a halt transfer. These are frequently phrases that may propose illegal activities specified as money laundering, Financing terrorism Or another obscure operations.

Examples of words and phrases that may rise suspicion:

• Black money
• Payment for brokering services
• Money laundering
• International transaction (if applicable to countries with increased risk)
• Offshore funds
• Black marketplace purchases
• Cash transfers
• Bank boxes
• Financing of illegal activities

Before we decide to make a transfer, it is worth making certain that transaction title is consistent with its real purpose. erstwhile conducting transactions for example for business purposes, it is worth that the transfer title accurately reflects the service or product for which payment is made. specified an approach will aid to avoid problems related to an improperly qualified transaction.

What can happen if the bank decides to review?

Once the bank detects a suspicious transaction, it can take different steps depending on the situation. The most common activities include:

1. Stopping the transfer – If the strategy detects words of doubt, the transaction can be stopped to explain.
2. Frozen account – In any cases, the bank may decide to temporarily frost its client account until the circumstances are clarified.
3. Request for additional explanations – The bank can ask for papers confirming the legality of the transfer. This applies peculiarly to large amounts and global transfers.
4. Notification to applicable services – In situations where transactions point to criminal activities, banks are required to study specified cases to General Financial Information Inspector (GIIF).

What is worth taking to avoid problems?

To avoid checking or freezing an account, it is worth following any simple rules erstwhile making transfers:

• Be precise in the transfer title: The transaction description should be clear and consistent with its real purpose. Avoid words that may rise doubts.
• Use authoritative company names: If the transfer relates to a business transaction, usage full company names, not abbreviations or common phrases.
• Check global Regulations: If you are making an global transfer, make certain that its intent is lawful and does not entail a hazard of violating global rules.
• Report large transactions: In case of higher value transfers (e.g. over PLN 15,000) it is worth informing the bank about the intent of the transaction in order to avoid stopping the transfer.

Although banks are required to monitor financial transactions, their activities are aimed at preventing financial crime and protecting the banking system. To avoid problems with transfers and unnecessary controls, it is crucial careful formulation of the transfer title and compliance with transparency rules in transactions. This avoids freezing accounts and cases that may take quite a few time and nerves.