Monitoring transactions is a vital function for AMMs, enabling them to:

1. _Detect and prevent fraud_: Identify and block suspicious transactions.

2. _Comply with regulations_: Meet anti-money laundering (AML) and Combating the Financing of Terrorism (CFT) requirements.

3. _Report suspicious activity_: Notify relevant authorities, such as FinCEN or FINTRAC.

4. _Protect customers_: Prevent unauthorized or fraudulent transactions.

5. _Maintain market integrity_: Ensure fair and transparent trading practices.

6. _Identify potential risks_: Flag unusual transaction patterns or behavior.

7. _Collaborate with authorities_: Share information and assist in investigations.

8. _Enhance security measures_: Continuously update and refine transaction monitoring systems.

By monitoring transactions, AMMs play a crucial role in maintaining the security and integrity of the financial system, preventing illicit activities, and protecting customers.