Textbook/Unit 04

AML & financial crime

Customer due diligence, ownership, monitoring, investigations, and reporting.

Unit 04 / The big picture

Turn unusual activity into a tested account.

An entity network places the customer profile at the center of owners, source of funds, counterparties, and transaction pattern. Evidence flows to an investigation dossier: establish facts, test a hypothesis, and record disposition. Legal timing, access controls, and review apply throughout. An alert or relationship does not establish criminal activity.

Enlarge to read every label and explore the connections

A customer profile connects ownership, funding, counterparties, and transaction patterns. An investigation tests the explanation and records a separate reporting decision.

  1. Build the network from typed, supported relationships.

  2. Compare observed activity with the customer explanation.

  3. Separate investigative findings from the reporting decision.

Inside this unit

5 chapters
An AML program is a control system
4.1 / 15 min read

AML programs and the risk-based approach

Turn financial-crime obligations into owned, testable processes.

Read chapter
Know the owners. Understand the relationship.
4.2 / 15 min read

Customer due diligence and beneficial ownership

Know the relationship, its purpose, and the people behind the entity.

Read chapter
A connection needs a meaning
4.3 / 15 min read

Entity resolution and financial networks

Connect records without turning association into guilt.

Read chapter
Context turns a signal into a useful alert
4.4 / 15 min read

Transaction monitoring and alert quality

Design scenarios that connect a risk hypothesis to evidence.

Read chapter
Build one case. Keep decisions separate.
4.5 / 15 min read

Investigations, reporting, and confidentiality

Build a defensible case without confusing suspicion with proof.

Read chapter