Ongoing Monitoring: Source vs Destination Accounts

Within the Alloy schema of a transaction, there are two main Alloy concepts: Source and Destination. Understanding these two concepts will be essential for effective transaction management.

This article will cover these terms in the following sections:

• Source Account
• Destination Account
• Data Flow Diagram
• Example

Source Account

The Source Account is an account where the evaluating transaction is connected to, and owned, by the Source Entity.

A Source Entity is the who onboarded or holds an account managed by your financial institution. They represents the party being evaluated in a transaction evaluation as well as the subject of a case but not necessarily the originator of the transaction.

A Source Entity can have multiple source accounts—for example, a checking and savings account.

Destination Account

The Destination Account is where the evaluating transaction is connected to, and owned by the counterparty. This is the other side of the transaction who the entity is interacting with to send the money to (or receive the money from if a return is being processed).

A Counterparty is the opposing party of the transaction that is not the source entity of the evaluating transaction. The counterparty can be a person that holds an account managed by your financial institution, but also external merchant account that provides goods and services to the source entity.

Like a Source Entity, a Counterparty can have multiple destination accounts—for example, a Counterparty can have a checking and savings account.

Data Flow Diagram

The Data Flow Diagram presented below provides a visual representation of the data flow between the “Source” and “Destination” objects within the Alloy framework. This diagram serves as a tool to understand the movement of transactions between these key concepts.

Example

Jane Doe is the account owner at a financial institution, Alloy Bank. Jane Doe purchases an item on Amazon. In this example, Jane Doe is the Source Entity, because they are the entity being screened. Amazon is the Destination, because it is what the entity is interacting with to send the money to.

If Jane Doe returns the item to Amazon, Amazon is still the Destination. Even though the money is being returned to the entity in the transaction, Amazon remains the Destination.