Transaction Monitoring
Transaction monitoring is a process used in financial services and other industries to detect, analyze, and report suspicious activities in real-time or near-real-time. It involves tracking financial transactions to identify patterns indicative of money laundering, fraud, terrorism financing, or other illicit activities. This is typically implemented through automated systems that apply rules, machine learning models, and behavioral analytics to flag anomalies.
Developers should learn transaction monitoring when building or maintaining systems for banks, fintech companies, payment processors, or any organization handling financial data to comply with anti-money laundering (AML) and know your customer (KYC) regulations. It's crucial for preventing financial crimes, reducing operational risks, and ensuring regulatory compliance, with use cases including real-time fraud detection in payment gateways, suspicious activity reporting in banking apps, and compliance monitoring in cryptocurrency exchanges.