Pawn Shops

Pawn Shops

Recognizing unusual transactions

As a pawnshop are you familiar with the practices within your line of business. Whether a transaction is considered unusual depends largely on your professional judgment. Your opinion is consistent with what is considered unusual within your profession. In addition to your judgment, there are situations that are unusual by nature and should therefore be reported.

If a situation arises as described in the examples below (not exhaustive), this is a reason to further examine whether the transaction could be related to money laundering and / or terrorist financing. You do not have to determine with certainty that money laundering or terrorist financing is involved. You merely need to have an assumption / presumption that the transaction may be related to money laundering or terrorist financing.

If you believe that money laundering or terrorist financing may be involved, you are required to report this under the subjective indicator.

Red flags – Pawnshop | compra y venta

  • The client pays in cash (in small denominations, with uncounted money, in unusual packaging)
  • The client gives objects as a security (collateral) which unmistakably originates from a crime
  • The client often provides items as a security (collateral) but does not pay off his debt or shows no interest in paying off the loan or obtaining his items
  • The client provides objects as a security (collateral) far below the market value of those objects

Presentations:

Presentation pawnshops 10102014

1.08 MB | 25 downloads