Which term corresponds to indicators of potentially suspicious activity?

Study for the Certified Bank Secrecy Act Professional Test. Use flashcards and multiple-choice questions with hints and explanations. Get exam ready!

Red flags are signals that something may be off in a transaction or a customer's behavior, indicating potential suspicious activity. In BSA/AML programs, staff are trained to look for patterns and combinations of factors rather than relying on a single data point. When red flags are observed, they trigger further review, escalation, and often the filing of a Suspicious Activity Report. Funds transfers describe the action itself and can be normal or suspicious depending on context; automated monitoring systems are the tools that scan data and generate alerts; managing alerts is the process of handling those signals. The specific term that captures indicators of potentially suspicious activity is red flags.