Related Terms
DEFINITION
Transaction Monitoring
Transaction monitoring refers to the processes and systems used to observe client transactional activity in real-time or through periodic reviews to identify unusual patterns or specific red flags that may indicate suspicious activity requiring further investigation.
Synonyms
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Acronyms
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Synonyms
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Acronyms
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Examples
The bank’s transaction monitoring system flagged an unusually large cash deposit inconsistent with the client’s normal activity.
FAQ
What are common red flags in transaction monitoring?
Red flags can include unusual volumes or frequencies, transactions inconsistent with client profile, and unusual counterparties.
How can AI and machine learning enhance transaction monitoring?
AI can identify complex patterns, adapt to new risks, and reduce false positives compared to rules-based monitoring.
What actions are taken when suspicious activity is identified?
Suspicious activity is investigated and if warranted, reported to authorities via Suspicious Activity Reports (SARs).
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Book your demo today and see why leading financial institutions worldwide trust Atfinity to drive their digital transformation.