Which type of transactions are usually scrutinized under AML regulations?

High-value and unusual transactions are typically scrutinized under Anti-Money Laundering (AML) regulations because they often bear the hallmarks of suspicious activity. AML frameworks aim to detect and prevent financial crimes, including money laundering, which can occur when individuals attempt to conceal the origins of illegally obtained funds.

High-value transactions are significant because they involve larger sums of money, making them more likely to be associated with illicit activities. Unusual transactions might not align with the customer's typical behavior or financial profile, raising red flags for financial institutions. Such anomalies could include sudden large deposits, withdrawals, or transfers that deviate from established patterns.

Regulatory bodies enforce vigilant monitoring of these transactions to identify potential risks and ensure compliance with laws designed to deter financial crime. By analyzing these transactions, institutions can report suspicious activity to authorities, contributing to broader efforts to combat money laundering.

Other options either limit the scope of scrutiny inappropriately or focus on routine activities that typically do not trigger further investigation, underscoring why high-value and unusual transactions are the primary focus of AML practices.