Which term describes the ongoing monitoring of financial activity to detect anomalies?

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Multiple Choice

Which term describes the ongoing monitoring of financial activity to detect anomalies?

Ongoing monitoring of financial activity to detect anomalies is Monitoring Transactions. In an AML program, after you establish who a customer is and assess their risk, you don’t stop there—you continuously watch the customer’s activity. This means setting up rules and alerts to spot unusual or unexpected patterns, such as unusually large deposits, rapid inflows and outflows, frequent transfers to unfamiliar or high‑risk jurisdictions, or activity that doesn’t fit the customer’s profile. When something seems off, the bank investigates and may file a suspicious activity report if warranted. This differs from upfront checks like Due Diligence, which is about identifying and verifying who the customer is and understanding risk at the outset. The other terms aren’t about ongoing surveillance of transactions.

Ongoing monitoring of financial activity to detect anomalies is Monitoring Transactions. In an AML program, after you establish who a customer is and assess their risk, you don’t stop there—you continuously watch the customer’s activity. This means setting up rules and alerts to spot unusual or unexpected patterns, such as unusually large deposits, rapid inflows and outflows, frequent transfers to unfamiliar or high‑risk jurisdictions, or activity that doesn’t fit the customer’s profile. When something seems off, the bank investigates and may file a suspicious activity report if warranted.

This differs from upfront checks like Due Diligence, which is about identifying and verifying who the customer is and understanding risk at the outset. The other terms aren’t about ongoing surveillance of transactions.

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