SME Bank has selected Flagright's platform for real-time transaction monitoring and anti-money laundering compliance operations.
The Lithuania-based digital bank announced on 3 February 2026 that it has deployed Flagright's technology to centralise transaction monitoring, watchlist screening, and investigations. SME Bank operates under a banking licence issued by the European Central Bank (ECB) and provides digital banking and lending services to small and medium-sized enterprises (SMEs).
Platform capabilities and deployment
Flagright's system enables SME Bank to monitor customer and transaction activity through configurable risk-based rules. The platform includes watchlist screening functionality for customers and counterparties, with alert generation and investigation tools. SME Bank will use the system's case management features for alert investigation and documentation.
The platform provides role-based access controls and maker-checker functions designed to support decision-making processes as compliance teams scale. Flagright positions its technology as a no-code solution for financial crime controls, allowing institutions to configure monitoring parameters without custom development.
Furthermore, SME Bank focuses on serving business clients across Europe, providing day-to-day banking services alongside lending products tailored to SMEs. The bank is expanding its regional presence and selected Flagright following an evaluation of the platform's transaction monitoring and compliance capabilities.
AML technology and regulatory requirements
Financial institutions operating under ECB supervision are required to maintain transaction monitoring systems and conduct sanctions screening as part of anti-money laundering and counter-terrorist financing obligations. Digital banks serving business clients face compliance requirements for customer due diligence, ongoing monitoring, and suspicious activity reporting.
Transaction monitoring platforms analyse payment flows and customer behaviour against predetermined rules and risk indicators to identify potentially suspicious activity. Watchlist screening compares customer data and transaction counterparties against sanctions lists, politically exposed persons databases, and other regulatory screening requirements.
Flagright operates as a compliance technology provider serving financial institutions with AI-based monitoring and screening tools. The company's platform competes with established AML software vendors and newer compliance technology providers targeting digital banks and fintech companies.
According to regulatory frameworks in EU jurisdictions, banks must implement systems capable of detecting unusual or suspicious transactions in real time or near real time. Institutions are required to maintain audit trails of compliance decisions and alert-handling processes.
SME Bank joins other European digital banks deploying specialised compliance technology platforms to manage growing transaction volumes and meet regulatory expectations for financial crime controls. The selection of third-party AML technology reflects broader adoption of cloud-based compliance systems among digitally native financial institutions.
