Which term refers to an objective basis for forming a suspicion in the context of money laundering?

The term that refers to an objective basis for forming a suspicion in the context of money laundering is “Indication.” This concept is crucial in legal and regulatory frameworks surrounding financial crimes. An indication involves concrete evidence or facts that lead to the suspicion of illicit activities, providing law enforcement and financial institutions a warrant to further investigate or take action in compliance with anti-money laundering laws.

In the context of money laundering, indications might include unusual patterns of transactions, significantly large deposits without a clear source of funds, or behaviors that deviate from typical financial norms. These factors create a foundation for suspicion that something illegal may be happening, which justifies a deeper inquiry or reporting under the law.

Other terms like presumption and assumption lack the required objective basis tied directly to observable actions or facts, relying instead on subjective or inferential reasoning. Expectation does not fit the context, as it implies anticipation rather than concrete evidence. Thus, indication is the most applicable term when discussing the objective basis necessary to form a suspicion regarding money laundering activities.