Under AML, what is ongoing monitoring designed to detect?

Under AML, what is ongoing monitoring designed to detect?

• A. It is not required after initial check
• B. Ongoing monitoring to detect unusual or suspicious activity
• C. It only applies to corporate clients
• D. It replaces initial due diligence

Answer: (B)

Ongoing monitoring is about continuously watching a customer’s activity to spot anything that doesn’t fit their known profile. After you’ve established identity and risk, you keep reviewing transactions and behavior to detect unusual patterns, such as sudden spikes in volume, transfers to unfamiliar or high‑risk destinations, new sources of funds, or activity that doesn’t match the customer’s business or past behavior. When something looks suspicious, it prompts further investigation and potential reporting to authorities. This approach is required for all customers and sits alongside initial due diligence rather than replacing it; it keeps risk awareness active as the customer’s activity evolves.

Ongoing monitoring is about continuously watching a customer’s activity to spot anything that doesn’t fit their known profile. After you’ve established identity and risk, you keep reviewing transactions and behavior to detect unusual patterns, such as sudden spikes in volume, transfers to unfamiliar or high‑risk destinations, new sources of funds, or activity that doesn’t match the customer’s business or past behavior. When something looks suspicious, it prompts further investigation and potential reporting to authorities. This approach is required for all customers and sits alongside initial due diligence rather than replacing it; it keeps risk awareness active as the customer’s activity evolves.