1. AML / Fraud Management Components

LFIs and TPPs must follow rigorous procedures to detect, prevent, and manage AML / fraud effectively

Image Added	AML / Fraud Monitoring and Prevention	Covers monitoring transactions for risk indicators, identifying unusual patterns, and educating customers on fraud prevention
Image Added	AML / Fraud Detection Process	Involves identifying suspicious transactions, verifying activities with customers, and collecting supporting documentation
Image Added	AML / Fraud Response	Includes freezing transactions, conducting investigations, resolving issues, and reporting to authorities
Image Added	Liability for Fraud	Addresses determining liability according to standards and ensuring proper record retention

2. AML / Fraud Monitoring and Prevention

2.1 Monitoring and Prevention

Monitoring Transactions for Risk Indicators

• LFIs should continuously monitor transactions for potential AML / fraud indicators

• Conduct standard screening for payments, including assessing risk based on the provided transaction data, OF Risk Data Block, customer behavior, and device information

Key Risk Indicators

• Unusual transaction patterns or amounts

• Transactions from new or unverified devices

• High-risk locations or merchants

Data Points to be Monitored