INV-TM-006Critical Risk
transaction monitoring
Red Flag
Advisory account for a corporate client shows investments in sectors completely unrelated to the client’s business, with no board resolution or documented investment policy authorizing the allocation.
Industry
Investment Advisers
Transaction Type
wire
Customer Type
business entity
Category
Regulatory Source
Document:FIN-2015-G001 Investment Advisers
Type:FinCEN Guidance
CFR Citation:31 CFR §1024.220
SAR Category:Suspicious activity
FinCEN Key Term:Unrelated Sector Investment
Last Verified:2026-04-15
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.