Which of the following is a red flag indicating unusual activity in wire transfers?

• A. Regular payroll payments
• B. Verified funds received
• C. Excessive Counterparties
• D. Small single transaction

Answer: (C)

Patterns of wire transfers that show a high number of different counterparties in a short period indicate unusual activity. When there are many recipients or frequent transfers to unrelated entities, it stands out as a red flag because it can signal attempts to obscure the true origins or destinations of funds, or to fragment payments to evade monitoring or reporting thresholds. The other options describe routine or legitimate activity: payroll payments are common for businesses, verified funds received suggests legitimacy, and a small single transaction alone is not typically a strong indicator of unusual activity. So, excessive counterparties best signals something worthy of scrutiny in wire transfers.