Which behavior may be considered "suspicious" according to BSA compliance?

Withdrawal patterns inconsistent with known activities are deemed suspicious because they may indicate potential money laundering or other illicit financial activities. Under the Bank Secrecy Act (BSA), financial institutions are required to monitor and report transactions that appear irregular or don't match the customer's typical financial behavior.

If a customer usually makes small withdrawals and suddenly starts withdrawing large sums or exhibits erratic withdrawal patterns without a clear explanation, this deviation could raise red flags. The BSA emphasizes the importance of understanding a customer's baseline behavior and recognizing when their activities diverge significantly from that norm. Such anomalies warrant further investigation, as they may suggest the customer is attempting to obscure the source of funds or facilitate illegal transactions.

In contrast, consistent withdrawal patterns and large deposits that align with known business activities typically reflect legitimate banking behavior and are less likely to raise concerns under BSA guidelines. Regular account transfers between banks can also be commonplace and may not appear suspicious without any additional factors suggesting further scrutiny is warranted.