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AML, KYC and Fraud Prevention

D12 Risk, compliance and regulation · 8 lessons

Version 1.0 | Last reviewed 2026-11-05

Learner explains AML and KYC controls, including customer due diligence, transaction monitoring, and suspicious activity reporting, and identifies red flags in payment patterns. Learner practises this skill on realistic banking cases, explaining the reasoning clearly and using correct terminology throughout the work.

AML, KYC and fraud prevention: the AML lifecycle, customer due diligence, transaction monitoring and fraud patterns.

What You Can Do After This Chapter

Learning objective. Learner explains AML and KYC controls, including customer due diligence, transaction monitoring, and suspicious activity reporting, and identifies red flags in payment patterns. Learner practises this skill on realistic banking cases, explaining the reasoning clearly and using correct terminology throughout the work.

Practical assessment. Learner reviews six months of account activity for a small business, including round-amount transfers of 9,500 dollars, rapid in-and-out flows, and payments to high-risk countries, and flags four red flags with the evidence for each. Learner then writes a monitoring alert summary, states the next action, and explains when a suspicious activity report is required. Learner presents the work with calculations and assumptions stated clearly, then reviews it against the chapter checklist and corrects any gaps before submission.

Expected deliverables.

Completion criterion. Learner flags at least three genuine red flags with evidence, states the correct next action, and explains the reporting trigger accurately. Judgement covers accuracy, completeness, and clear written explanation in the submitted work.

In this chapter
  1. What Money Laundering Really Looks Like
  2. KYC and Customer Due Diligence
  3. Transaction Monitoring
  4. Suspicious Activity Reports
  5. Common Fraud Patterns in Payments
  6. Machine Learning in Fraud Detection
  7. Building a Fraud Prevention Culture
  8. APP fraud and the UK PSR reimbursement rules

Start Lesson 1: What Money Laundering Really Looks Like →