Transaction monitoring typically involves the following steps:
Data Collection: Gathering data from various sources such as bank accounts, credit card transactions, and other financial activities. Analysis: Using sophisticated algorithms and software to analyze the collected data for patterns and anomalies that may indicate suspicious activities. Alert Generation: Generating alerts for any transactions that appear to be suspicious or unusual based on predefined criteria. Investigation: Conducting a detailed investigation of the flagged transactions to determine whether they are indeed suspicious or if they can be justified. Reporting: Reporting confirmed suspicious transactions to the relevant regulatory authorities.