Typology refers to the classification of patterns or methods used in specific activities, particularly in organised or systematic processes. In the context of Anti-Money Laundering (AML) and financial crime compliance, typologies help identify and categorise common techniques and schemes that criminals use to launder money or finance terrorism. 

For example, typologies in money laundering may include methods like trade-based money laundering, structuring (smurfing), or the use of shell companies. These typologies are developed based on real-world cases and serve as a reference for compliance professionals to detect suspicious behaviours in financial transactions. By understanding different typologies, financial institutions can enhance their monitoring systems, spot red flags more effectively, and take proactive steps to prevent illegal activities. Continuous updates to typologies ensure that compliance teams stay ahead of evolving threats in financial crime.