Which statement best describes 'out-of-pattern activity' in AML monitoring?

• A. Activity that conforms to customer type, account history, or volume
• B. Activity that is random and unusual
• C. Activity that does not conform to customer type, account history, or known legitimate purpose
• D. Transactions between family members

Answer: (C)

Out-of-pattern activity means behavior that doesn’t fit a customer’s usual profile. In AML monitoring, analysts build a baseline from the customer’s type of activity, account history, and known legitimate purposes. When current activity deviates from that baseline in a way that’s inconsistent with the customer type, their history, or what’s clearly legitimate, it’s flagged as out-of-pattern and flagged for further review. This is why the best description is that it does not conform to customer type, account history, or known legitimate purpose. Activity that matches the customer’s typical behavior isn’t out-of-pattern, and simply being random or unusual doesn’t by itself define nonconformance to the profile. Transactions between family members can be legitimate or suspicious, but they don’t alone define out-of-pattern behavior.