This post is self-explanatory and is reaffirmed and validated by the strong comments it garners from LinkedIn financial professionals. All levels cited here must be acted on to be effective in helping financial institutions prevent fraud.
Naveed Mehboob
Senior AML KYC Analyst| SDD|CDD|EDD Reviews| Transaction Monitoring
Transaction Monitoring: L1 → L2 → L3
An effective AML program relies on a structured investigation process:
✅ L1: Screen alerts, validate customer activity, and close false positives.
🔎 L2: Conduct detailed investigations, identify red flags, perform sanctions/PEP/adverse media checks, and document findings.
⚖️ L3: Make the final decision, file SAR/STR where required, and strengthen internal controls.
A strong L1 → L2 → L3 workflow helps financial institutions detect suspicious activity, reduce financial crime, and stay compliant with regulatory requirements.
