Transaction Monitoring

Transaction monitoring is the process of systematically analyzing and examining financial transactions to detect suspicious or potentially illicit activities. It involves monitoring and analyzing customer transactions, accounts, and activities in real-time to identify patterns, anomalies, or red flags that may indicate money laundering, fraud, terrorist financing, or other illegal activities.

Transaction monitoring systems employ advanced technologies like data analytics, machine learning, and artificial intelligence to assess multiple variables, including transaction amounts, frequencies, locations, and the relationships between customers, counterparties, and entities. The objective is to flag and investigate high-risk transactions or behaviors, enabling financial institutions and regulatory bodies to take appropriate action to prevent illegal activities, safeguard the financial system, and comply with regulations. Transaction monitoring helps identify potential risks, improves anti-money laundering (AML) measures, enhances fraud detection, and supports the reporting of suspicious activities, thus ensuring the integrity and security of financial systems.