The Executive Office for Control & Non- proliferation (EOCN), a department of Ministry of Economy has issued a guidance note stating “Red Flags” on “Terrorist & Proliferation Financing”.  The objective of this guidance is to provide a comprehensive list of “Terrorist Financing” (TF) and “Proliferation Financing” (PF) indicators of Red Flags concerning Financial Institutions (FI), Designated Non-financial Businesses & Professions (DNFBPs), and Virtual Asset service providers (VASPs). These abovementioned categories need to take into consideration the defined Red flags while identifying and detecting suspicious activities.

The Red flag indicators listed by the EOCN suggests the likelihood of the occurrence of ML/TF activities. It should be noted that the existence of a single red flag does not determine the evidence of financial crime. Therefore, a thorough examination of the facts of the case must be conducted in order to identify and detect illegal activities.

This guidance recommends the regulated entities to incorporate these red flags to their screening and monitoring systems to better identify and detect suspicious activities or transactions.