Complete Transaction Monitoring Flow

Overview

This guide covers the complete flow for transaction monitoring, from creation through automatic risk analysis and alert generation. Transactions are evaluated against transaction-specific rules to detect suspicious patterns, unusual amounts, high-risk jurisdictions, and other red flags.

Flow Diagram

Step 1: Create Transaction

Transactions are created via the transaction API with automatic currency conversion and optional rule execution. Endpoint: POST /transactions Request:

{
  "externalId": "TXN-2024-00001",
  "type": "TRANSFER",
  "status": "PENDING",
  "amount": 50000,
  "currency": "EUR",
  "paymentMethod": "bank_transfer",
  "originEntityId": "sender-entity-uuid",
  "originName": "John Doe",
  "originCountry": "FR",
  "destinationEntityId": "receiver-entity-uuid",
  "destinationName": "Acme Corporation",
  "destinationCountry": "US",
  "description": "Business payment for services",
  "category": "B2B",
  "transactedAt": "2025-12-24T10:30:00Z",
  "executeRules": true,
  "metadata": {
    "ip": "192.168.1.1",
    "userAgent": "Mozilla/5.0...",
    "sessionId": "sess_abc123"
  }
}

Field Descriptions:

Field	Type	Required	Description
externalId	string	Yes	Your unique identifier for this transaction
type	enum	Yes	Transaction type: PAYMENT, TRANSFER, WITHDRAWAL, DEPOSIT, REFUND, CHARGEBACK, REVERSAL, FEE, ADJUSTMENT, OTHER
status	enum	No	Transaction status (default: PENDING)
amount	number	Yes	Transaction amount in original currency
currency	string	Yes	ISO 4217 currency code (e.g., USD, EUR, GBP)
paymentMethod	enum	No	Payment method used
originEntityId	uuid	No	Sender entity ID (if entity exists in system)
originExternalId	string	No	Sender external identifier
originName	string	No	Sender name
originCountry	string	No	Sender country (ISO 3166-1 alpha-2)
destinationEntityId	uuid	No	Receiver entity ID (if entity exists in system)
destinationExternalId	string	No	Receiver external identifier
destinationName	string	No	Receiver name
destinationCountry	string	No	Receiver country (ISO 3166-1 alpha-2)
description	string	No	Transaction description
category	string	No	Transaction category
transactedAt	datetime	No	When the transaction occurred (default: now)
executeRules	boolean	No	Execute rules automatically (default: true)
metadata	object	No	Additional custom metadata

What happens automatically:

Currency Conversion:
- If currency is not USD, converts amount to USD using real-time exchange rates
- Stores: amountInUsd, exchangeRate, rateSource, rateTimestamp
- On conversion failure, transaction is still created (without USD amount)
Transaction Creation:
- Transaction record created in database
- Unique ID generated
- Links to origin/destination entities if provided
Automatic Risk Analysis (if executeRules: true):
- Executes transaction-specific rules
- Calculates risk score
- Creates alerts for matched rules
- Updates transaction status if needed

Response (with risk analysis):

{
  "transaction": {
    "id": "txn-uuid",
    "organizationId": "org-uuid",
    "externalId": "TXN-2024-00001",
    "type": "TRANSFER",
    "status": "PENDING",
    "amount": "50000.00",
    "currency": "EUR",
    "amountInUsd": "54500.00",
    "exchangeRate": "1.09",
    "rateSource": "fixer.io",
    "rateTimestamp": "2025-12-24T10:30:00Z",
    "convertedAt": "2025-12-24T10:30:01Z",
    "originEntityId": "sender-entity-uuid",
    "originName": "John Doe",
    "originCountry": "FR",
    "destinationEntityId": "receiver-entity-uuid",
    "destinationName": "Acme Corporation",
    "destinationCountry": "US",
    "riskScore": "68.00",
    "flagged": true,
    "riskFactors": [
      "Large transaction amount detected",
      "Cross-border transaction to high-risk jurisdiction"
    ],
    "transactedAt": "2025-12-24T10:30:00Z",
    "createdAt": "2025-12-24T10:30:02Z"
  },
  "rulesResult": {
    "success": true,
    "executed": true,
    "result": {
      "entityId": "txn-uuid",
      "entityType": "transaction",
      "riskScore": 68,
      "overallConfidence": 0.95,
      "totalRules": 8,
      "successfulRules": 3,
      "rulesExecuted": [
        {
          "ruleId": "rule-uuid-1",
          "ruleName": "Large Transaction Amount",
          "executed": true,
          "conditionsMet": true,
          "confidence": 0.98,
          "actionsExecuted": [
            {
              "type": "add_risk_score",
              "value": 30
            }
          ]
        },
        {
          "ruleId": "rule-uuid-2",
          "ruleName": "High-Risk Jurisdiction Transfer",
          "executed": true,
          "conditionsMet": true,
          "confidence": 0.92,
          "actionsExecuted": [
            {
              "type": "add_risk_score",
              "value": 38
            },
            {
              "type": "create_alert",
              "result": {
                "alertId": "alert-uuid"
              }
            }
          ]
        }
      ],
      "flags": [
        {
          "type": "LARGE_AMOUNT",
          "severity": "warning",
          "reason": "Transaction amount exceeds $50,000 threshold",
          "confidence": 0.98
        },
        {
          "type": "HIGH_RISK_JURISDICTION",
          "severity": "critical",
          "reason": "Transfer to high-risk jurisdiction",
          "confidence": 0.92
        }
      ]
    },
    "rulesTriggered": 3,
    "executionTimeMs": 850
  }
}

Step 2: Currency Conversion

How Currency Conversion Works

Automatic Conversion: If currency !== 'USD', system automatically converts to USD
Provider: Uses ms-providers service (configured via MS_PROVIDERS_URL)
Caching: Exchange rates cached for 1 minute (TTL)
Resilience: Circuit breaker pattern with fallback to stale cache
Graceful Degradation: If conversion fails, transaction still created (without USD amount)

Conversion Metadata:

{
  "amountInUsd": "54500.00",
  "exchangeRate": "1.09",
  "rateSource": "fixer.io",
  "rateTimestamp": "2025-12-24T10:30:00Z",
  "convertedAt": "2025-12-24T10:30:01Z"
}

USD Transactions:

If currency: 'USD', no conversion needed
amountInUsd = amount
exchangeRate = 1
rateSource = 'no-conversion'

Conversion Failure Handling

If currency service is unavailable:

{
  "transaction": {
    "amount": "50000.00",
    "currency": "EUR",
    "amountInUsd": null,
    "exchangeRate": null,
    "rateSource": null
  }
}

Transaction is created successfully, but USD amount is unavailable. Rules that depend on USD amounts will use original amount instead.

Step 3: Transaction Risk Analysis

How Transaction Risk Analysis Works

The RulesExecutionService evaluates transactions using transaction-specific rules:

Context Loading:
- Loads transaction data
- Loads linked entities (origin/destination) with enrichment data
- Prepares execution context
Rule Selection:
- Filters rules by targetEntityTypes: ['transaction']
- Filters by trigger: 'created' (for automatic) or 'manual_evaluation'
- Filters by status: enabled: true and status: 'active'
Rules Execution:
- Evaluates rule conditions against transaction context
- Executes actions for matched rules (add score, create alerts, update status)
- Accumulates risk score
Score Update:
- Updates transaction riskScore
- Sets flagged: true if score > 50
- Stores riskFactors array with reasons
Alert Creation:
- Rules with create_alert action generate alerts
- Alerts linked to transaction
- Alerts consolidated into investigations after 5-second delay

Transaction-Specific Rules Examples

Rule 1: Large Transaction Amount

{
  "name": "Large Transaction Amount",
  "targetEntityTypes": ["transaction"],
  "triggers": ["created"],
  "conditions": {
    "operator": "AND",
    "conditions": [
      {
        "field": "amountInUsd",
        "operator": "greater_than",
        "value": 50000
      }
    ]
  },
  "actions": [
    {
      "type": "add_risk_score",
      "value": 30
    }
  ]
}

Rule 2: High-Risk Jurisdiction Transfer

{
  "name": "High-Risk Jurisdiction Transfer",
  "targetEntityTypes": ["transaction"],
  "triggers": ["created"],
  "conditions": {
    "operator": "OR",
    "conditions": [
      {
        "field": "originCountry",
        "operator": "in_list",
        "value": ["AF", "IR", "KP", "SY"]
      },
      {
        "field": "destinationCountry",
        "operator": "in_list",
        "value": ["AF", "IR", "KP", "SY"]
      }
    ]
  },
  "actions": [
    {
      "type": "add_risk_score",
      "value": 50
    },
    {
      "type": "create_alert",
      "severity": "critical",
      "description": "Transaction involves high-risk jurisdiction"
    }
  ]
}

Rule 3: Rapid Transaction Velocity

{
  "name": "Rapid Transaction Velocity",
  "targetEntityTypes": ["transaction"],
  "triggers": ["created"],
  "conditions": {
    "operator": "AND",
    "conditions": [
      {
        "field": "originEntityId",
        "operator": "historical_count",
        "timeWindow": "1h",
        "comparison": "greater_than",
        "value": 10
      }
    ]
  },
  "actions": [
    {
      "type": "add_risk_score",
      "value": 40
    },
    {
      "type": "create_alert",
      "severity": "warning",
      "description": "Unusual transaction velocity detected"
    }
  ]
}

Rule 4: Sanctioned Entity Transaction

{
  "name": "Sanctioned Entity Transaction",
  "targetEntityTypes": ["transaction"],
  "triggers": ["created"],
  "conditions": {
    "operator": "OR",
    "conditions": [
      {
        "field": "originEntity.enrichment.sanctionsMatch",
        "operator": "equals",
        "value": true
      },
      {
        "field": "destinationEntity.enrichment.sanctionsMatch",
        "operator": "equals",
        "value": true
      }
    ]
  },
  "actions": [
    {
      "type": "add_risk_score",
      "value": 100
    },
    {
      "type": "update_status",
      "status": "blocked"
    },
    {
      "type": "create_alert",
      "severity": "critical",
      "description": "Transaction involves sanctioned entity"
    }
  ]
}

Transaction Context Structure

The rules engine receives this context:

{
  "transaction": {
    "id": "txn-uuid",
    "type": "TRANSFER",
    "amount": 50000,
    "currency": "EUR",
    "amountInUsd": 54500,
    "originEntityId": "sender-uuid",
    "originName": "John Doe",
    "originCountry": "FR",
    "destinationEntityId": "receiver-uuid",
    "destinationName": "Acme Corp",
    "destinationCountry": "US",
    "transactedAt": "2025-12-24T10:30:00Z"
  },
  "originEntity": {
    "id": "sender-uuid",
    "type": "person",
    "name": "John Doe",
    "enrichmentData": {
      "isPep": false,
      "sanctionsMatch": false,
      "riskScore": 25
    }
  },
  "destinationEntity": {
    "id": "receiver-uuid",
    "type": "company",
    "name": "Acme Corp",
    "enrichmentData": {
      "sanctionsMatch": false,
      "riskScore": 42
    }
  }
}

Step 4: Batch Transaction Creation

For high-volume scenarios, use the batch endpoint to create multiple transactions efficiently. Endpoint: POST /transactions/batch Request:

{
  "transactions": [
    {
      "externalId": "TXN-001",
      "type": "PAYMENT",
      "amount": 1000,
      "currency": "USD",
      "originName": "Customer A",
      "destinationName": "Merchant X"
    },
    {
      "externalId": "TXN-002",
      "type": "PAYMENT",
      "amount": 2500,
      "currency": "EUR",
      "originName": "Customer B",
      "destinationName": "Merchant X"
    }
  ],
  "executeRules": true,
  "skipDuplicates": true
}

Features:

Bulk insert for better performance
Optimized currency conversion (caches rates for same currency)
Automatic duplicate detection (by externalId)
Optional rule execution on all transactions
Max 1000 transactions per batch
2-minute timeout

Response:

{
  "summary": {
    "total": 2,
    "created": 2,
    "duplicates": 0,
    "failed": 0,
    "flagged": 0,
    "totalCost": 150
  },
  "transactions": [
    {
      "id": "txn-uuid-1",
      "externalId": "TXN-001",
      "riskScore": "15.00",
      "flagged": false
    },
    {
      "id": "txn-uuid-2",
      "externalId": "TXN-002",
      "riskScore": "22.00",
      "flagged": false
    }
  ],
  "executionTimeMs": 3200
}

Step 5: Manual Transaction Analysis

If you created a transaction with executeRules: false, you can manually trigger risk analysis later. Endpoint: POST /entities/:transactionId/analyze Request:

{
  "entityType": "transaction",
  "enrichIfNeeded": false
}

Use Cases:

Re-analyze transaction after entity enrichment
Analyze transaction after rule updates
Periodic re-scoring of pending transactions

Response: Same as automatic risk analysis result

Step 6: Transaction Queries and Monitoring

List Transactions with Filtering

Endpoint: GET /transactions Query Parameters:

GET /transactions?flagged=true&minAmount=10000&sortBy=risk_score&sortOrder=desc&limit=50

Available Filters:

flagged: Filter by flagged status (true, false, all)
minAmount / maxAmount: Amount range filter (in original currency)
currency: Filter by currency
type: Filter by transaction type
status: Filter by transaction status
entityId: Filter by origin or destination entity
startDate / endDate: Date range filter
search: Free-text search (externalId, description, names)
sortBy: Sort field (transacted_at, amount, risk_score, created_at)
sortOrder: Sort direction (asc, desc)

Response:

{
  "transactions": [
    {
      "id": "txn-uuid",
      "externalId": "TXN-2024-00001",
      "type": "TRANSFER",
      "amount": "50000.00",
      "currency": "EUR",
      "amountInUsd": "54500.00",
      "riskScore": "68.00",
      "flagged": true,
      "originName": "John Doe",
      "destinationName": "Acme Corp",
      "transactedAt": "2025-12-24T10:30:00Z"
    }
  ],
  "pagination": {
    "total": 150,
    "limit": 50,
    "offset": 0
  }
}

Get Transaction Details

Endpoint: GET /transactions/:transactionId Response: Full transaction object with risk analysis details

View Transaction Alerts

Endpoint: GET /alerts?transactionId=:transactionId Response: All alerts generated for the transaction

Step 7: Alert Consolidation and Investigations

After risk analysis, alerts are automatically consolidated into investigations:

Alert Creation: Rules with create_alert action create individual alerts
5-Second Delay: System waits to collect all related alerts
Consolidation: Related alerts consolidated into single investigation
Investigation Creation: Investigation created with:
- Priority based on highest alert severity
- Status: “open”
- All related alerts linked
Notifications: Analysts notified of new investigation

Investigation Structure:

{
  "id": "investigation-uuid",
  "organizationId": "org-uuid",
  "title": "High-Risk Transaction: TXN-2024-00001",
  "priority": "critical",
  "status": "open",
  "relatedTransactions": ["txn-uuid"],
  "relatedEntities": ["sender-uuid", "receiver-uuid"],
  "alerts": [
    {
      "id": "alert-uuid-1",
      "severity": "critical",
      "type": "HIGH_RISK_JURISDICTION",
      "description": "Transaction involves high-risk jurisdiction"
    },
    {
      "id": "alert-uuid-2",
      "severity": "warning",
      "type": "LARGE_AMOUNT",
      "description": "Transaction amount exceeds threshold"
    }
  ],
  "createdAt": "2025-12-24T10:30:07Z"
}

Best Practices

Always Enable Auto-Rules: Set executeRules: true (default) to catch suspicious transactions immediately.
Use Batch API for Volume: For bulk imports or high-volume scenarios, use /transactions/batch for better performance.
Link Entities: Always provide originEntityId and destinationEntityId when available. This enables:
- Entity enrichment data in rule evaluation
- Better risk aggregation
- Entity-level transaction patterns
External ID Mapping: Always set unique externalId for correlation with your systems.
Currency Handling: System handles currency conversion automatically. Ensure MS_PROVIDERS_URL is configured correctly.
Rule Configuration: Configure transaction rules for your risk appetite:
- Amount thresholds appropriate for your business
- High-risk jurisdictions based on your compliance requirements
- Velocity rules based on normal transaction patterns
Status Management: Use transaction status field to track lifecycle:
- PENDING → APPROVED/REJECTED/CANCELLED
- Update status based on manual review or external validation
Monitoring: Set up dashboards to monitor:
- Flagged transaction rate
- Average risk scores
- Alert volume by type
- Investigation resolution time

Advanced Patterns

Pattern 1: Entity Risk Affects Transaction Risk

Configure rules that consider entity risk:

{
  "name": "High-Risk Entity Transaction",
  "conditions": {
    "operator": "OR",
    "conditions": [
      {
        "field": "originEntity.riskScore",
        "operator": "greater_than",
        "value": 70
      },
      {
        "field": "destinationEntity.riskScore",
        "operator": "greater_than",
        "value": 70
      }
    ]
  },
  "actions": [
    {
      "type": "add_risk_score",
      "value": 35
    }
  ]
}

Pattern 2: Velocity and Pattern Detection

Use historical queries in rules:

{
  "name": "Unusual Transaction Pattern",
  "conditions": {
    "operator": "AND",
    "conditions": [
      {
        "field": "originEntityId",
        "operator": "historical_sum",
        "aggregateField": "amountInUsd",
        "timeWindow": "24h",
        "comparison": "greater_than",
        "value": 100000
      }
    ]
  }
}

Pattern 3: Sanctions Screening on Transaction

{
  "name": "Transaction Sanctions Check",
  "conditions": {
    "operator": "OR",
    "conditions": [
      {
        "field": "originEntity.enrichment.sanctionsMatch",
        "operator": "equals",
        "value": true
      },
      {
        "field": "destinationEntity.enrichment.sanctionsMatch",
        "operator": "equals",
        "value": true
      }
    ]
  },
  "actions": [
    {
      "type": "update_status",
      "status": "blocked"
    },
    {
      "type": "add_risk_score",
      "value": 100
    }
  ]
}

Error Handling

Currency Conversion Failures

{
  "transaction": {
    "amountInUsd": null,
    "exchangeRate": null
  },
  "warnings": [
    "Currency conversion failed: fixer.io service unavailable"
  ]
}

Transaction created successfully, rules use original amount.

Rule Execution Failures

{
  "rulesResult": {
    "success": false,
    "error": "Rules engine timeout after 30000ms",
    "executed": false
  }
}

Transaction created, but risk not calculated. Manually trigger analysis later.

Batch Partial Failures

{
  "summary": {
    "total": 100,
    "created": 95,
    "failed": 5
  },
  "failures": [
    {
      "externalId": "TXN-042",
      "error": "Validation failed: invalid currency code"
    }
  ]
}

Successful transactions created, failures reported separately.

Getting Started

Use Cases

Webhooks

Person

Company

Devices

Events

Know Your Customer (KYC)

Transactions

Payment Methods

Rules

Risk Matrix

Alerts

Investigations

Data Ingestion

Documents

Enrichment

Integrations

Interactive Tutorials

​Overview

​Flow Diagram

​Step 1: Create Transaction

​Step 2: Currency Conversion

​How Currency Conversion Works

​Conversion Failure Handling

​Step 3: Transaction Risk Analysis

​How Transaction Risk Analysis Works

​Transaction-Specific Rules Examples

​Transaction Context Structure

​Step 4: Batch Transaction Creation

​Step 5: Manual Transaction Analysis

​Step 6: Transaction Queries and Monitoring

​List Transactions with Filtering

​Get Transaction Details

​View Transaction Alerts

​Step 7: Alert Consolidation and Investigations

​Best Practices

​Advanced Patterns

​Pattern 1: Entity Risk Affects Transaction Risk

​Pattern 2: Velocity and Pattern Detection

​Pattern 3: Sanctions Screening on Transaction

​Error Handling

​Currency Conversion Failures

​Rule Execution Failures

​Batch Partial Failures

​Next Steps