What are the risk indicators for loan services?
A range of typologies indicate that loan services can be used to facilitate money laundering and/or the financing of terrorism. The following circumstances may indicate a risk of money laundering or terrorism financing in connection with such services: (31) • rapid repayment of loans • loans repaid using mainly cash • multiple loans obtained over a short period • loans for an unusual purpose • loans where the security offered far exceeds the amount of the loan • the loan applicant is clearly unable to service the loan • cash offered as the primary security • loans between family members and associates for no apparent commercial reason • loans applied for on behalf of another party • a proposed loan being inconsistent with the applicant’s personal or commercial activities.
