What is the difference between watch-list filtering and transaction monitoring?
Watch list filtering involves screening names and addresses against sanctions lists such as OFAC, BOE etc. for the purpose of identifying embargoed and prohibited individuals and entities. Transaction monitoring involves the scanning and analysis of SWIFT, payment and other financial transactions to identify unusual or suspicious activity for reporting, as required by applicable AML law. Transaction monitoring differs from watch list filtering in that it requires interpretation and judgement to determine and identify unusual activity and unusual patterns of activity or transactions.
