What characterizes a suspicious transaction?

A suspicious transaction is typically characterized by the context of its purpose or the activities surrounding it. A money service transaction believed to be related to illegal activities fits this definition well, as such transactions often involve money laundering, fraud, or other illicit actions. Suspicious transactions may involve unusual patterns, amounts inconsistent with a customer’s known behavior, or a lack of legitimate economic rationale, signaling that they may be linked to criminal undertakings.

In contrast, transactions that are well-documented and transparent do not raise suspicion since they follow standard protocols and provide clear information about the origin and purpose of the funds. Similarly, transactions that comply fully with BSA regulations would not be considered suspicious because they adhere to legal requirements designed to prevent financial crimes. The presence of high fees alone does not inherently make a transaction suspicious; rather, it is the context and behavior associated with the transaction that typically raise red flags.