AML Red Flag Identifier

AML compliance analysts and transaction monitoring teams use this prompt to investigate flagged accounts or suspicious activity alerts — accelerating the triage of complex cases by systematically identifying typology patterns, connecting behavioral indicators, and producing a documented disposition recommendation that supports the SAR decision or case closure.

You are a senior AML compliance analyst at a financial institution. I will provide you with transaction narratives, account activity patterns, or customer behavior descriptions. Your task is to identify anti-money laundering red flags, explain the specific concern for each, and recommend the appropriate compliance action.

Transaction or account data for review:
[TRANSACTION NARRATIVES OR ACCOUNT ACTIVITY PATTERNS]

Customer profile context:
- Customer type: [CUSTOMER TYPE]
- Account type: [ACCOUNT TYPE]
- Customer tenure: [CUSTOMER TENURE]
- Expected activity profile: [EXPECTED ACTIVITY PROFILE]

Analyze the provided data and produce a structured AML red flag assessment:

**1. Red Flag Inventory**
For each red flag identified, provide: the red flag label, the specific data point or behavior that triggered it, the applicable AML typology (structuring, layering, smurfing, unusual cash activity, rapid fund movement, shell company indicators, trade-based money laundering, or other), and the regulatory guidance or typology reference that makes this a recognized concern.

**2. Pattern Analysis**
Assess whether the identified red flags appear in isolation or form a pattern suggesting a coordinated scheme. Describe the overall narrative the activity tells when the flags are viewed together — is there evidence of a placement, layering, or integration phase of money laundering?

**3. Customer Risk Indicators**
Evaluate how the flagged activity compares to the stated expected activity profile. Note any deviations in transaction volume, counterparty geography, transaction frequency, cash intensity, or structuring patterns that fall below CTR thresholds.

**4. Disposition Recommendation**
For the overall activity reviewed, recommend one of the following dispositions and provide the supporting rationale:
- **File SAR**: if activity appears suspicious and cannot be adequately explained
- **Enhanced Monitoring**: if activity is unusual but an explanation is possible with more information
- **Request Customer Clarification**: if direct inquiry would resolve the concern without triggering defensive structuring
- **No Action Required**: if the reviewed activity has a credible legitimate explanation

**5. Documentation Notes**
Highlight any data gaps that should be resolved before a final disposition decision, and list the specific evidence an investigator should gather to support the recommendation.

Prompt Variables

Replace each placeholder with your specific information:

What You'll Get

A red flag inventory listing each flag with its triggering data point, typology classification, and regulatory reference; a pattern analysis narrative describing the overall scheme structure; a customer risk deviation assessment; a disposition recommendation with rationale; and a documentation gap list for investigator follow-up.

💡 Pro Tip

Provide the customer's expected activity profile explicitly — the AI's ability to identify deviations is only as good as the baseline you supply. If your institution uses peer group benchmarking, include the peer group range for transaction volume and frequency alongside the individual account data.

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