Transaction Monitoring

About

Transaction monitoring is a critical process used by financial institutions to detect and prevent fraudulent activities by analyzing financial transactions. It involves continuous, automated analysis to identify suspicious patterns and anomalies that may indicate financial crimes such as money laundering or terrorist financing. This process is essential for compliance with anti-money laundering (AML) regulations and involves setting predefined rules and thresholds to flag unusual transactions. Transaction monitoring systems leverage advanced technologies like machine learning and AI to adapt to emerging fraud patterns. They assess customer risk profiles, monitor transaction history, and generate alerts for further investigation. The process is risk-based, focusing more on high-risk customers and transactions. It helps financial institutions protect themselves and their customers from financial crimes while ensuring regulatory compliance.