Know Your Transaction (KYT) is a compliance process used to monitor and analyse financial transactions in real time to detect suspicious or illicit activity. It goes beyond traditional KYC (Know Your Customer) by focusing on behavioural patterns and transaction histories.
KYT is critical for both traditional financial institutions and digital asset platforms, as it helps detect money laundering, fraud, and other financial crimes. In crypto environments, where transactions are faster and cross-border flows are common, automated KYT systems often flag unusual volumes, rapid transfers between wallets, or links to blacklisted addresses.
Regulators and financial service providers rely on KYT to maintain transparency, uphold anti-money laundering (AML) standards, and protect users across all financial ecosystems.
Example:
Financial institutions monitor transaction patterns to detect suspicious or irregular activity.
