Anti-Money Laundering(AML)/Combating Financing Terrorism(CFT) - India in the Global Context

  A suspicious transaction is a financial transaction that may be related to money laundering, terrorist financing, or other unlawful activity. Financial institutions are required to report suspicious transactions to the government as part of their efforts to counter financial crimes.   A suspicious transaction is a transaction that causes a reporting entity to have a feeling of apprehension or mistrust about the transaction considering its unusual nature or circumstances, or the person or group of persons involved in the transaction. Reporting entities assess the suspicion according to a risk-based approach for customer due diligence, real-time payment screening, transaction monitoring and behavioural monitoring, to identify changes in the respondent’s transaction risk profile. RBI Definition Suspicious transaction” means a “transaction” as defined below, including an attempted transaction, whether or not made in cash, which, to a person acting in good faith: ...

  The Transaction Monitoring process identifies suspicious activity, patterns, or trends that may indicate money laundering or terrorist financing activities. It is a process of monitoring, tracking, and analyzing financial transactions. It involves monitoring customer transactions and assessing their historical and current information and interactions to provide a complete picture of their activity . Transaction monitoring means regularly keeping a close watch on the transactions . It involves checking a customer’s historical transactions, customer’s profile, account details, and interactions. These checks enable the identification of possible customer risks and the prediction of their future behaviour.    T ransaction Monitoring refers to the monitoring of transfers, deposits and withdrawals, in real time or after they have been processed by a bank or financial institution. Transaction monitoring is an important part of a financial crime compliance program...