Transactions refer to the movement of money or value between parties, typically involving the exchange of goods, services or financial assets.

In the context of finance and Compliance, a transaction can include a wide range of activities such as deposits, withdrawals, wire transfers, purchases, sales, loans or investments. Every transaction generates a record that includes details such as the parties involved, the amount, the date, and the method of transfer.

With Anti-Money Laundering (AML) and Know Your Customer (KYC) Compliance, monitoring transactions is essential for identifying unusual or suspicious activity that could indicate Money Laundering, Fraud or Terrorist Financing. That is, with the understanding of what constitutes a normal transaction for a customer, financial institutions and regulated entities can detect anomalies and take appropriate action.