Module 5: Transaction Monitoring Fundamentals

In this module I learnt the purpose of transaction monitoring, the difference between rules-based and behaviour-based approaches, and how thresholds and patterns are used to detect suspicious activity.

Through this I am achieving the ability to recognise unusual transaction patterns, reason through alerts, and identify red flags specific to fintech products like peer-to-peer transfers, prepaid cards, and cross-border activity. How to distinguish between normal customer behaviour and potential risk scenarios.

In fast-moving digital platforms like YAP, missed alerts can expose the company to regulatory fines, enforcement actions, or reputational damage. Effective monitoring ensures that suspicious activity is detected early and investigated properly.

Through this module I understood the need for combining pattern recognition with risk-based reasoning which are essential skills for AML investigators, compliance officers, and fintech regulatory roles.

By sharing this learning, I want to show that developing strong monitoring skills is achievable with structured practice. And anyone can build the ability to detect risks proactively and make reasoned decisions that protect both the business and its customers.

0 comments