Which factor is NOT considered a red flag in suspicious transactions?

The factor that is considered to be not a red flag in suspicious transactions is strict compliance with financial reporting. This is because strict compliance indicates that the financial transactions and reporting practices are being conducted in accordance with established regulations and standards. Financial institutions and regulatory bodies encourage such compliance as it reflects transparency, accountability, and adherence to legal obligations, thereby reducing the risk of fraudulent activities.

In contrast, large cash payments without plausible cause, frequent changes in accounts and known locations, and transactions inconsistent with customer profiles are all indicators that may suggest suspicious activity. These behaviors often exhibit characteristics that could be associated with money laundering or other illicit financial practices, which heighten the need for vigilance in monitoring transactions. Understanding these distinctions is crucial in identifying and managing suspicious transactions effectively.