What is transaction monitoring?
Ongoing review of payments to catch fraud and money-laundering risk.
Definition
Transaction monitoring is the ongoing review of payments — money in and money out — to detect suspicious activity such as fraud or money laundering. Rules and risk scoring assess each transaction, and anything unusual is flagged for a compliance team to investigate. In Kenya it mostly covers M-Pesa, PesaLink and Airtel Money collections and payouts.
In plain English
In plain English: transaction monitoring keeps watching payments after onboarding, and raises a flag when money moves in a way that looks risky.
Why it matters
Regulators expect businesses that move money to monitor it, not just onboard customers once. Good transaction monitoring surfaces structuring, mule accounts and unusual payout patterns early — and gives you an auditable record that you looked.
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Frequently asked questions
Why is transaction monitoring required?
Businesses that move money are expected to detect and report suspicious activity, not just verify customers once. Transaction monitoring is how you meet that expectation and keep an auditable record.
What does transaction monitoring flag?
Common flags include structuring (breaking large amounts into smaller ones), mule-account behaviour, rapid in-and-out movement, and payout patterns that don’t fit the customer’s profile.
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