What makes sense with the transaction pattern you are confronted with and processing? Does it align and make sense given the profile of your customer that you have determined through proper KYC procedures and continuous monitoring of their activity since onboarding them?
Mr. Singh highlights 5 transaction patterns that deserve a second look.
Sr. AML Analyst | Financial Crime & KYC Specialist | Helping AML & Compliance Professionals Strengthen Risk Decisions
Not every unusual transaction is suspicious. But every unusual pattern deserves context.
In AML, the transaction itself is rarely the full story.
What matters is whether the activity makes sense when you connect it with the customer profile, expected behaviour, counterparties, geography, and stated purpose.
Here are 5 transaction patterns that may deserve a second look:
🔹 1. Sudden Activity Spike
A sharp increase in activity without an apparent change in the customer’s profile or expected behaviour.
🔹 2. Rapid Movement of Funds
Funds entering an account and being transferred out shortly afterward.
🔹 3. Multiple Third-Party Payments
Transactions involving multiple seemingly unrelated parties.
🔹 4. Unusual Geographic Activity
Activity involving countries or regions that don’t appear consistent with the customer’s known profile or expected activity.
🔹 5. Round-Dollar / Repetitive Transactions
Repeated transactions with similar or unusually rounded amounts that may require additional context.
But here’s the key point:
A red flag is a starting point—not a conclusion.
The real AML skill is not simply identifying what looks unusual.
It is being able to answer:
“Why is this happening, and does the explanation make sense?”
Strong AML decisions connect:
Transaction Behaviour + Customer Profile + Context + Rationale
That is what turns an alert into a defensible investigation.
💬 AML professionals: Which transaction pattern do you see most often during investigations?
#AML #AntiMoneyLaundering #FinancialCrime #TransactionMonitoring #KYC #Compliance #AMLAnalyst #FinCrime
