Which of the following is a red flag for terrorist financing?

• A. Dormant accounts becoming active
• B. Regular payroll deposits
• C. Travel reimbursements that reflect ordinary business activity
• D. Consistent spending aligned with occupation

Answer: (A)

Dormant accounts becoming active is a red flag because accounts that have been idle are often used to hide or test funds before moving them into the financial system. When activity suddenly appears after a long period of inactivity, it can indicate that funds are being reintroduced in a way that obscures their origin or destination, a tactic sometimes used in terrorist financing to avoid scrutiny. This pattern—long inactivity followed by unexpected activity—deviates from normal customer behavior and triggers heightened monitoring and due diligence.

In contrast, regular payroll deposits, travel reimbursements that reflect ordinary business activity, and spending that aligns with a person’s occupation generally fit legitimate, expected patterns and don’t by themselves raise suspicion.