SME Bank has chosen Flagright’s platform for real-time transaction monitoring and anti-money laundering (AML) compliance.
On February 3, 2026, the digital bank based in Lithuania announced that it had deployed Flagright’s technology to centralize its transaction monitoring, watchlist screening, and investigative processes. SME Bank operates under a banking license issued by the European Central Bank (ECB) and offers digital banking and lending services specifically designed for small and medium-sized enterprises.
Key features of the Flagright platform
Flagright’s system allows SME Bank to monitor customer and transaction activities through customizable risk-based rules. The platform includes watchlist screening capabilities for customers and counterparties, complete with alert generation and investigation tools. SME Bank will leverage these tools for alert investigation and documentation through the case management features provided by the system.
Role-based access controls and maker-checker functions are integrated into the platform to support decision-making as compliance teams grow. Flagright positions its technology as a no-code solution, enabling financial institutions like SME Bank to configure monitoring parameters without requiring custom development.
SME Bank serves business clients across Europe, offering day-to-day banking services alongside tailored lending products for SMEs. The bank is expanding its presence regionally and chose Flagright based on the platform’s advanced transaction monitoring and compliance capabilities.
Regulatory landscape for financial institutions
Financial institutions operating under ECB supervision are mandated to maintain robust transaction monitoring systems and conduct sanctions screening as part of their AML and counter-terrorist financing obligations. Digital banks catering to business clients must adhere to customer due diligence, ongoing monitoring, and suspicious activity reporting requirements.
Transaction monitoring platforms analyze payment flows and customer behavior against predefined rules and risk indicators to detect potentially suspicious activities. Watchlist screening involves comparing customer data and transaction counterparties against sanctions lists, politically exposed persons databases, and other regulatory requirements.
Flagright operates as a compliance technology provider, offering AI-based monitoring and screening tools to financial institutions. The company’s platform competes with established AML software vendors and newer providers targeting digital banks and fintech companies.
As per regulatory frameworks in EU jurisdictions, banks must have systems capable of detecting unusual or suspicious transactions in real time or near real time. Institutions are required to maintain audit trails for compliance decisions and alert-handling processes.
SME Bank joins other European digital banks that are adopting specialized AML technology platforms to manage increasing transaction volumes and meet regulatory expectations for financial crime controls. The selection of third-party AML technology signifies a broader trend towards cloud-based compliance systems among digitally native financial institutions.
