Internal controls for identifying unusual transactions.

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Suspicious activity monitoring is the overarching internal control that continuously scans transactions and customer behavior to identify patterns that may indicate illicit activity. It relies on predefined red flags, thresholds, and analytics to generate alerts for investigation, helping staff determine when to escalate and potentially file a SAR. The other terms describe parts or outcomes of the process—red flags are indicators, managing alerts is the workflow to handle those alerts, and identification of unusual activity is the objective—whereas suspicious activity monitoring embodies the actual control framework that detects the unusual transactions.