Which of the following describes a high-risk customer FinTechs might encounter?

In the context of anti-money laundering (AML) and compliance within the FinTech sector, high-risk customers are those that pose a greater potential for engaging in illicit activity, including money laundering or financing terrorism. A customer linked to organized crime is considered high risk due to their associations with illegal activities and the likelihood that they may seek to disguise the origins of illicit funds.

Organized crime groups often operate on a larger scale, using sophisticated methods to obscure their financing and transactions. FinTech companies must be particularly vigilant when dealing with such customers, as they can be involved in complex schemes that raise significant regulatory concerns.

In contrast, customers with clear business purposes, accurate identification, and normal ownership structures generally exhibit qualities that suggest lower risk. These elements indicate transparency and legitimacy, making them less likely to engage in activities that would draw the scrutiny of compliance officers.