What is the purpose of risk indicators in transaction monitoring?

The purpose of risk indicators in transaction monitoring is to establish a baseline for normal transaction behavior. This baseline allows financial institutions to identify unusual or potentially suspicious transactions by comparing current activities against what is considered typical for a client. By analyzing these risk indicators, compliance teams can detect variances that may suggest fraud, money laundering, or other illicit activities. Understanding normal patterns of behavior is essential for effective monitoring and enables proactive risk management.

The other options do not relate directly to the function of risk indicators in transaction monitoring. Evaluating the financial viability of clients or enhancing customer service involves different aspects of client relationship management, while prioritizing marketing strategies pertains to business operations rather than compliance and risk management.