Each Smart Scenario encompasses multiple Red Flags and covers different transactional behaviour to emulate the typical characteristics of a particular type of financial crime, such as Modern Slavery, Proliferation Financing, Tax Evasion or Terrorism Financing. Our Red Flag Tests contain synthetic data to mimic the exact transactional patterns of defined money laundering typologies such as the ones mentioned here.

Testing will highlight transaction monitoring system inaccuracies and identify incorrect threshold parameters that can cause a system to produce unnecessary alerts or miss specific behavioural-type transactions.

It will provide the intelligence required by a system technician to understand existing Red Flag assumptions and to then carry out remediation and post-testing enhancement activities to rid a transaction monitoring system of time-wasting inaccuracies. This will enable analysts to identify transactional patterns and behaviours consistent with known money laundering typologies more easily. 

We have collated a unique database of over 10,000 Red Flags that have been defined by regulators, law enforcement agencies and banking associations around the globe.

AML Analytics™ is leading international regulatory guidance on Red Flag Tests through specialist research. Our Red Flag Tests and Smart Scenarios have been created in accordance with international best practice recommendations and guidance from the FATF, UNODC, OCC, FinCEN, HKMA, and many others.

Red Flag Testing is also used by regulators as an integral part of a Thematic Review to test the performance of the transaction monitoring systems used by their regulated entities.