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Yan’s Notes32
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Yan’s Notes32
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Accidental Toxicity

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Yan from Owner.One

A client can compromise their own bank or brokerage account simply by accepting a payment from a politically exposed person (PEP), a sanctioned individual, or anyone raising concerns related to AML or CFT. Receiving $10k from a "toxic" source could very likely put the entire account at risk, even if it holds $1 million. The payment might not come directly, but from family members or associates of such individuals. The same issue applies in reverse: if a client sends money to someone flagged as high-risk, they could face consequences. According to statistics, only 21.3% of clients are aware of the risks associated with incoming payments. Even fewer — just 9.4% — consider the risks of outgoing transactions. This discrepancy in risk perception is a misconception. For the bank, there's little difference between incoming and outgoing payments, and the incubation period for detecting such transactions can be as long as 1 to 1.5 years.

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