INV-CB-003Critical Risk

customer behavior

Red Flag

Client introduces another prospective investor who is a PEP or sanctioned individual, and attempts to facilitate account opening by vouching for them or offering to co-sign.

Industry
Investment Advisers
Transaction Type
wire
Customer Type
individual
Category
customer behavior
Regulatory Source
Document:Kleptocracy Advisory
Type:FinCEN Advisory
CFR Citation:31 CFR §1010.630
SAR Category:PEP concern
FinCEN Key Term:PEP Introduction
Last Verified:2026-04-15
View source document
Back to Library

This red flag is provided for informational and educational purposes only. It is not legal, regulatory, or compliance advice. Always consult the official source document and a qualified compliance professional for guidance specific to your situation.

Talk with Us