Transaction Monitoring

Transaction Monitoring (TM) is a core component of an Anti-Money Laundering (AML) compliance program, involving the real-time or near-real-time observation and analysis of customer transactions to detect and flag suspicious activities indicative of financial crime, such as money laundering, terrorist financing, and sanctions evasion. It operates by comparing transaction data against established customer profiles, historical patterns, and regulatory rules to identify anomalies that warrant further investigation and potential reporting to financial intelligence units (FIUs).