Question 1

What is transaction monitoring?

Accepted Answer

Transaction monitoring is the ongoing process of reviewing financial transactions for indicators of money laundering, fraud, sanctions violations, and other financial crime. An effective transaction monitoring system evaluates each transaction against predefined rules and risk models, generates alerts when suspicious patterns are detected, and supports investigation and regulatory reporting workflows.

Question 2

What is real-time transaction monitoring?

Accepted Answer

Real-time monitoring evaluates a transaction at the moment of submission and returns a compliance decision before the payment settles. This is distinct from batch monitoring, which reviews transactions hours or days after the fact. Real-time monitoring allows platforms to block or hold suspicious transactions before funds move, rather than simply reporting on them afterwards.

Question 3

What is KYT (Know Your Transaction)?

Accepted Answer

KYT is the application of transaction monitoring principles to blockchain and cryptocurrency transfers. Because crypto transactions are pseudonymous and settled on public ledgers, KYT tools ingest on-chain data, attribute wallet addresses to known entities, and score each transaction for exposure to high-risk categories darknet markets, mixing services, sanctioned wallets, and other risk signals.

Question 4

What is a SAR (Suspicious Activity Report)?

Accepted Answer

A SAR is a regulatory report filed by a financial institution when a transaction or customer activity meets the threshold for suspicion under applicable AML law. In the United States, SARs are filed with FinCEN. In the United Kingdom, Suspicious Activity Reports are submitted to the National Crime Agency (NCA). Filing a SAR discharges the institution's legal reporting obligation; failure to file when required carries regulatory and criminal penalties.

Question 5

What are AML transaction monitoring rules?

Accepted Answer

AML monitoring rules are conditional logic statements that define what patterns of transaction activity should trigger an alert. Examples include: transactions above a reporting threshold, rapid sequences of smaller transactions that appear to structure around a threshold, transfers to high-risk jurisdictions, or unusual deviations from a customer's normal behaviour. Rules can be pre-built (as Hypersign ships) or custom-built for a specific institution's risk profile.

Question 6

What is the FATF Travel Rule?

Accepted Answer

FATF Recommendation 16 requires virtual asset service providers (VASPs) and financial institutions to collect, verify, and transmit originator and beneficiary information alongside any transfer above a defined threshold. The Travel Rule applies to crypto transfers between VASPs and is now law in most FATF member jurisdictions, including the European Union (under MiCA and AMLD6).

Question 7

What is auto-remediation in transaction monitoring?

Accepted Answer

Auto-remediation is the ability to pause a specific transaction and automatically request additional information from the end user such as proof of funds or source of wealth before making a final compliance decision. Rather than requiring a compliance analyst to manually chase the customer for documentation, auto-remediation handles the request-and-response cycle programmatically, escalating to manual review only if the user does not respond within the configured timeout window.

Question 8

How does Hypersign transaction monitoring work with KYC?

Accepted Answer

Every transaction evaluated by Hypersign is linked to the customer's KYC profile their verified identity, risk score from onboarding, prior AML screening results, and document verification status. This gives the risk scoring engine a richer signal than transaction data alone. A transaction from a new, unverified account is evaluated in a different context than the same transaction from a long-tenured, fully verified customer.

Question 9

What compliance regulations does Hypersign transaction monitoring support?

Accepted Answer

Hypersign supports FATF Recommendations (including the Travel Rule), AMLD5/AMLD6, MiCA, the Bank Secrecy Act, the UK Proceeds of Crime Act, GDPR, and DORA. The platform covers fiat and crypto monitoring, wallet screening, SAR/STR filing, and FATF Travel Rule data exchange within a single product.

Question 10

What is the difference between AML screening and transaction monitoring?

Accepted Answer

AML screening sometimes called sanctions screening or watchlist screening checks a customer's identity against sanctions lists, PEP databases, and adverse media at a specific point in time (typically at onboarding or on a scheduled rescreening cycle). Transaction monitoring, by contrast, analyses the pattern and content of financial activity continuously and in real time. Both are required under most AML regulatory frameworks; Hypersign provides both as connected components of a single compliance platform.

Stop Financial Crime Before the Money Moves.

Everything You Need for AML Transaction Monitoring

Real-Time Decisioning

Pre-Built Rule Bundles

Custom Rule Builder

Blockchain & Crypto (KYT)

Risk Scoring

Behavioural Analytics

Case Management

SAR / STR Filing

Auto-Remediation

Velocity & Threshold Rules

Sanctions & Watchlist Matching

Audit Trail & Reporting

A compliance verdict before the money moves.

Compliant from day one.

On-chain risk at transaction speed.

Every transaction gets a score, not just a pass/fail.

Investigate without switching tools.

From alert to filed report without leaving the platform.

Pause high-risk transactions, not every transaction.

Three Integration Paths

Built for high-volume payment flows.

Transaction Monitoring That Satisfies Regulators

Who Uses Transaction Monitoring

Fintech & Neobanks

Crypto Exchanges & VASPs

Payments & Remittance

iGaming & Betting

BNPL & Lending

Banking & Credit Unions

More Than a Rules Engine

One platform. Monitoring, investigation, and reporting.

Frequently Asked Questions

Evaluate every transaction. Investigate every alert. File every report.