What term refers to the ongoing review of financial activities for anomalies?

Study for the Certified Bank Secrecy Act Professional Test. Use flashcards and multiple-choice questions with hints and explanations. Get exam ready!

Multiple Choice

What term refers to the ongoing review of financial activities for anomalies?

Monitoring transactions is the ongoing review of financial activities for anomalies. Banks use transaction monitoring systems to continuously analyze customer activity against established rules and patterns. When activity looks unusual—such as large, rapid transfers, unusual cash activity, or transfers to high‑risk jurisdictions—the system generates alerts for investigators to review. This process is distinct from due diligence, which focuses on knowing the customer upfront and assessing risk, and from filing a Suspicious Activity Report, which is the formal submission prompted by findings. Joint SARs are collaborative reports filed with other institutions.

Monitoring transactions is the ongoing review of financial activities for anomalies. Banks use transaction monitoring systems to continuously analyze customer activity against established rules and patterns. When activity looks unusual—such as large, rapid transfers, unusual cash activity, or transfers to high‑risk jurisdictions—the system generates alerts for investigators to review. This process is distinct from due diligence, which focuses on knowing the customer upfront and assessing risk, and from filing a Suspicious Activity Report, which is the formal submission prompted by findings. Joint SARs are collaborative reports filed with other institutions.

More practice questions