Transaction Monitoring Skill - v1.0.0
AML transaction monitoring for ongoing customer relationships. Identifies suspicious patterns, assesses structuring and layering, and prepares Suspicious Activity Reports (SARs).
Overview
Transaction monitoring is a continuous obligation under AML regulations. This skill analyzes transaction data to detect patterns that may indicate money laundering, terrorist financing, or other financial crime.
Detection Patterns
1. Structuring (Smurfing)
- Multiple transactions just below reporting thresholds
- Multiple deposits across different branches/channels on same day
- Pattern of round-number transactions
- Threshold (US): $10,000 CTR threshold; $5,000 aggregated suspicious activity
2. Layering
- Complex routing through multiple accounts or entities
- Rapid movement between accounts with no clear business purpose
- International transfers through multiple jurisdictions
- Use of shell companies or nominee accounts
3. Circular Flows
- Money leaving and returning to same account via intermediaries
- Round-trip transactions with no economic substance
- Funds flowing through subsidiaries back to parent
4. Velocity Anomalies
- Sudden increase in transaction frequency
- Dramatic change in average transaction value
- Activity inconsistent with customer profile or declared business
- Dormant account reactivation with high-value activity
5. Geographic Risk Patterns
- Transactions to/from FATF grey-list or black-list jurisdictions
- Unexplained payments to/from high-risk countries
- Wire transfers to known shell company jurisdictions
Monitoring Process
Step 1: Data Analysis
- Import transaction data (CSV, Excel, or database extract)
- Calculate baseline metrics (average value, frequency, counterparties)
- Identify deviations from customer profile
Step 2: Pattern Detection
- Apply detection rules for each pattern type
- Flag transactions meeting alert criteria
- Score alerts by severity (LOW/MEDIUM/HIGH/CRITICAL)
Step 3: Investigation [HITL Checkpoint]
- Analyst reviews flagged transactions
- Assesses whether activity has legitimate explanation
- Researches counterparties and destinations
- Documents investigation findings
Step 4: Decision
- CLEAR: Document rationale, close alert
- SUSPICIOUS: Draft SAR narrative, escalate to MLRO
- CRITICAL: Immediate MLRO notification, consider account freeze
Step 5: SAR Preparation (if applicable)
Claude drafts SAR narrative including:
- Subject information
- Suspicious activity description
- Transaction details
- Why activity is suspicious
- Supporting evidence
CRITICAL HITL: SAR filing is always a human decision. Claude drafts; MLRO reviews and files.
Output
- Transaction analysis report (Excel with flagged items)
- Alert summary with severity scoring
- SAR draft (if suspicious activity identified)
- Escalation brief for MLRO
- Updated customer risk assessment
Regulatory Basis
- US: BSA/AML, FinCEN SAR requirements ($5,000 threshold)
- UK/EU: AMLD5 ongoing monitoring, POCA 2002 SAR obligations
- MENA: CBUAE, SAMA transaction monitoring requirements
Version: 1.0.0
Author: Vyayasan