Transaction monitoring is the backbone of AML compliance—without it, financial institutions cannot reliably detect or prevent illicit activities, helps identify unusual, high-risk transactions in real time. It is critical for preventing money laundering, terrorist financing, and fraud. Knowledge of TM helps to file timely filing of Suspicious Transaction Reports (STRs/SARs) and ensures adherence to AML/CFT regulations and guidelines from authorities like the FIU, FATF, or domestic regulators.

• Introduction: Importance of TM in AML and regulatory compliance
• Monitoring Process: Data collection → Screening → Alert generation → Investigation → Reporting
• Thresholds & Triggers: Define transaction limits and suspicious activity indicators
• Rule Setup: Design effective rules, minimize false positives/negatives, periodic tuning
• Automation: Benefits, limitations, factors to consider (data quality, risk segmentation, workflow)
• Good Rules Framework: Risk-based approach, customer/product/geography considerations, escalation procedures
• Alert Investigation: Steps for investigating, documentation, decision-making for reporting
• Suspicious Transaction Reports (STRs): Filing requirements, content, timelines, confidentiality
• Governance: Roles and responsibilities, policy frameworks, review cycles, reporting metrics