A personal banking customer who simultaneously opens several accounts with almost identical names will most likely cause further inquiry, as this could indicate an attempt to evade transaction monitoring, reporting, or identification requirements. For example, a customer could open accounts with slight variations of their name, such as John Smith, Jon Smith, J. Smith, or John Smyth, to avoid detection or aggregation of their transactions. This could also be a sign of identity theft, fraud, or money muling. Therefore, the bank should verify the customer’s identity and the purpose of the accounts, and monitor the activity for any suspicious patterns or behaviors.
ACAMS CAMS Certification Study Guide, 6th Edition, Chapter 4, Section 4.2.2, p. 1051
ACAMS CAMS Certification Exam Outline, 6th Edition, Domain 2, Task 2.1, p. 52
FATF Guidance on the Risk-Based Approach for the Banking Sector, October 2014, p. 353
