Understanding Transaction Monitoring Systems in Banks

A concept course for compliance officers at banks and NBFCs, aspiring forensic auditors and risk professionals who want to understand the machine at the centre of every bank's AML programme. It explains why Indian banks must monitor transactions under the PMLA and the RBI KYC Master Direction, where monitoring sits between KYC, screening and reporting to FIU-IND, and how real-time payment monitoring differs from overnight batch scans. You then open up the engine: the data it consumes from core banking and channel systems, how customer risk rating and segmentation shape what it looks for, and why poor data quality quietly breaks most systems. The course decodes detection scenarios, from structuring and rapid movement of funds to dormant account reactivation and UPI mule networks, and follows an alert through triage, investigation and case management to a filed STR. It closes with the hard problems: false positives, threshold tuning, performance metrics and model validation, the shift to machine learning and network analytics, and what regulators in India and abroad have done to banks whose monitoring failed.