Top 5 AML Penalties in 2025

Top 5 AML Penalties in 2025

Last Updated on Aug 12, 2025, 2k Views

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Top 5 AML Penalties in 2025

OKX (crypto exchange operator)

  • Penalty: Nearly US $505 million in fines and forfeitures
  • Details: Paid a US$84.4 million fine and US$420.3 million in forfeiture for facilitating suspicious transactions, despite restrictions on U.S. users. A compliance monitor is required until February 2027.
  •  

TD Bank

  • Penalty: Over US $3 billion in total penalties (including DOJ and FinCEN), stemming from long-standing AML failures.

Barclays

  • Penalty: £42 million (~US$51 million+) for inadequate AML controls related to handling high-risk clients.

Revolut (by Bank of Lithuania)

  • Penalty: €3.5 million (~US$3.8 million) – the regulator’s largest fine to date, for AML monitoring shortcomings.

  • Honorable Mention

    • Monzo (UK): Fined £21 million for weak transaction monitoring and onboarding failures.
      LinkedIn

    • Fine actions in the UAE: Over Dh 339 million (~US$92 million+) in cumulative fines across multiple institutions in a sweeping AML crackdown.

LPL Financial

  • Penalty: US $3 million fine in March 2025 for AML program failures related to penny stock trading.

  • Observations

    • The trend in 2025 continues to spotlight crypto platforms and digital financial services—like OKX, Revolut, LPL, and Monzo—as primary targets for AML enforcement.

    • Traditional banks (e.g. TD Bank, Barclays) still face large-scale penalties, underscoring that both legacy institutions and modern fintech/platforms must uphold strong compliance systems.

    • Fines range from a few million dollars for emerging firms to multi-billion-dollar settlements for systemic failures.

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    A Guide to AML/CFT Compliance in India

    A Guide to AML/CFT Compliance in India

    Last Updated on Aug 04, 2025, 2k Views

    Top AML-KYC Tools Explained: Purpose, Features & How to Use Them (2025 Guide)

    A Guide to AML/CFT Compliance in India

    1. Regulatory Framework

    • India’s Anti-Money Laundering (AML) and Countering Financing of Terrorism (CFT) compliance is governed by the following:

    • Prevention of Money Laundering Act (PMLA), 2002 – Primary legislation.

    • PMLA Rules – Operational guidelines.

    • Reserve Bank of India (RBI) – For banks and NBFCs.

    • SEBI – For securities market intermediaries.

    • IRDAI – For insurance companies.

    • FIU-IND – Financial Intelligence Unit for suspicious transaction reporting.

    2.Key Obligations for Reporting Entities

    • Entities such as banks, NBFCs, mutual funds, payment systems, and others must:

    • Maintain KYC Records: Follow RBI’s KYC Master Direction.

    • Conduct Customer Due Diligence (CDD):

    • Identify and verify customers and beneficial owners.

    • Risk-based approach for CDD (Low/Medium/High risk).

    • File Reports to FIU-IND:

    • CTR: Cash Transaction Report (₹10 lakh and above).

    • STR: Suspicious Transaction Report.

    • NTR: Non-Profit Organization Transaction Report (for NGOs).

    • Ongoing Monitoring: Transactions must be continuously monitored for red flags.

    • Record Keeping: Maintain transaction records for at least 5 years.

    3. Customer Due Diligence (CDD)

    CDD Includes:

    • Verification of identity using Aadhaar, PAN, Passport, etc.

    • Beneficial Ownership: Especially for companies and trusts.

    • Enhanced Due Diligence (EDD) for high-risk clients (PEPs, NGOs, cross-border entities).

    • Periodic KYC Updates: Based on customer risk rating.

    4. Risk-Based Approach (RBA).

    Institutions must:

    • Categorize customers by risk level.

    • Apply controls proportionate to the risk:

    • Low: Basic verification.

    • High: Enhanced due diligence, source of funds checks.

    • Review risk ratings periodically.

    5. Screening & Sanctions Compliance

    • Screen customers and transactions against:

    • UN Sanctions Lists (as notified by Ministry of External Affairs).

    • Domestic blacklists (RBI defaulters, SEBI debarred entities, etc.).

    • OFAC/PEP databases (if international exposure exists).

    • Maintain systems for automated screening and alert management.

    6. Training & Internal Controls.

    • AML/CFT training for all staff—especially frontline and compliance teams.

    • Designate a Principal Officer (PO) to report to FIU-IND.

    • Appoint a Designated Director responsible for overall compliance.

    • Perform internal audits and system validations regularly.

    7. Technology in AML/CFT

    Use AML software for:

    • Transaction monitoring

    • Pattern detection

    • Automated alerts

    • Case management

    • Examples: Tookitaki, ComplyAdvantage, NameScan, etc.

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      8. Penalties for Non-Compliance

      Under PMLA: Fines, imprisonment, or both.

      • Regulatory action by RBI, SEBI, or FIU-IND:

      • Penalties

      • Suspension or cancellation of license

      • Public reprimands

      • Practical Tips for Compliance Teams

      • Conduct regular risk assessments.

      • Keep AML/CFT policies updated with global best practices.

      • Establish a whistleblower policy for internal reporting.

      • Ensure board-level oversight on compliance effectiveness.

      AML Certification course

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      Global AML Updates

      Global Aml Updates

      Last Updated on Aug 04, 2025, 2k Views

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      Global AML Updates 2025

      1. Financial Action Task Force (FATF)

      • Guidance update (June 22, 2025) on promoting financial inclusion through a risk‑based approach. It reinforces FATF Recommendation 1 and includes new case studies across sectors

      • High-risk listings (as of Feb–June 2025): The FATF “blacklist” still includes Iran, DPRK (North Korea), and Myanmar. The “grey list” now comprises 25 jurisdictions (e.g., Algeria, Angola, Kenya, Nepal, Venezuela)

      2. European Union (EU)

      • AMLR & AMLD6 rollout: Regulations 2024/1620 and 2024/1624 modernize AML/CFT rules. They strengthen beneficial ownership transparency, create centralized bank and securities registers, revise sanctions regimes, and expand supervisory powers. AMLA, the new EU AML Authority, will begin operations mid‑2025, with full functionality by 2028/29
      • June 2025 delegated updates: The European Commission added new jurisdictions to its high-risk third-country list (e.g. Algeria, Kenya, Monaco), while delisting the UAE, Gibraltar, Barbados, Panama and others Financial Times

      3. United States

      • FinCEN’s extended deadlines (July 2025): U.S. institutions now have until September 4, 2025, to implement prior notices related to Mexico-based financial groups

      • Investment Advisers now FIR-regulated: A final rule (published Sept 4, 2024) brings Registered Investment Advisers (RIAs) and Exempt Reporting Advisers (ERAs) under AML/CFT regimes. Compliance deadlines were extended to January 1, 2028 for full implementation, SAR filing, and enhanced program rollouts

      • Corporate Transparency Act review: Beneficial ownership reporting now affects only foreign entities; domestic filings are exempt, easing burdens on U.S.-based companies

      4. United Kingdom

      • UK Money Laundering Advisory Notice update (March 27, 2025): HM Treasury revised its list of high-risk third countries following FATF’s plenary meeting earlier in 2025

      • FCA cash-based ML guidance (April 2, 2025): Financial Conduct Authority issued strengthened expectations for firms handling cash transactions and strengthening controls against cash-based laundering

      5. Australia

      • AML/CTF Bill 2024: Proposes expansion of AML/CTF scope to include professionals like lawyers and accountants. Failure to pass may risk Australia’s grey-listing by FATF in 2026. Frame includes risk-based proportionality for smaller firm
      • Emerging Global Trends
      • Tech & AI adoption: Regulators and firms are increasingly embracing real-time transaction monitoring, ML/AI-based risk scoring, and automation to scale AML effectiveness and reduce false positives
      • Unified global standards: There’s movement toward harmonization via risk-based approaches and improved transparency—particularly in the EU and UK, which are aligning more closely with FATF standards
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        Mock Interview Script (Entry-Level AML/KYC Role)

        Mock Interview Script (Entry-Level AML/KYC Role)

        Last Updated on Aug 04, 2025, 2k Views

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        Mock Interview Script (Entry-Level AML/KYC Role)

        Interviewer: Tell me about yourself.

        • You:

        “I’m a [your current or most recent role, e.g., recent graduate in accounting / customer service professional] with strong attention to detail and a growing interest in financial crime prevention. I’ve recently completed a certification in AML/KYC where I learned about customer due diligence, transaction monitoring, and red flags in money laundering. I’m now looking to apply those skills in a compliance-focused environment and grow into an AML analyst or KYC specialist role.”

        Interviewer: What is AML and why is it important?

        • You:

          “AML stands for Anti-Money Laundering. It includes policies and procedures used by financial institutions to detect and prevent money laundering, terrorism financing, and other financial crimes. It’s important because it protects the financial system from abuse and ensures institutions meet regulatory obligations.”

        Interviewer: Can you walk me through a basic KYC process?

        • You:
          “Sure. A basic KYC process starts with collecting identification documents from the customer—like a passport, utility bill, or company registration papers for businesses. The next step is verifying the identity, checking if the customer is a politically exposed person (PEP) or on a sanctions list. Then, a risk rating is assigned. For higher-risk customers, enhanced due diligence (EDD) is performed. Finally, the account is monitored continuously for suspicious activity.”

        Interviewer: What would you do if you noticed suspicious activity?

        • You:
          “I would follow the company’s escalation procedure. First, I’d gather all relevant transaction details, ensure the facts are documented clearly, and then report the case to the compliance officer or designated investigator. If it meets the internal threshold, a Suspicious Activity Report (SAR) would be prepared.”

        Interviewer: Do you have experience with Excel or any compliance tools?

        • You:

        “Yes, I’m comfortable using Excel for data entry, filtering, and basic analysis like identifying patterns or anomalies. While I haven’t yet used compliance tools like World-Check or Actimize in a live environment, I’ve watched training demos and completed coursework to understand how they support sanctions screening and transaction monitoring.”

        Interviewer: Why do you want to work in AML/KYC?

        • You:
          “I’m really interested in financial crime prevention and regulatory compliance. AML/KYC roles combine research, risk assessment, and investigative work—areas that align with both my skills and interests. I also value working in a field that contributes to public trust and global financial integrity.”

        Interviewer: Any questions for us?

        • You:
          “Yes, thank you. What kind of onboarding or training do new hires receive? Also, what does growth look like in your AML/KYC team over the next year?”

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          Sanction Screening process in AML KYC

          Sanction Screening process in AML KYC

          Sanction Screening process in AML KYC

          Last Updated on Jun 05 2025, 2k Views

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          Sanction Screening

          Sanction Screening Process in AML/KYC is a critical component of a financial institution’s compliance program, aimed at preventing transactions with individuals, entities, or countries subject to economic or trade sanctions. Here’s a step-by-step overview of the Sanction Screening process:

          1. Data Collection

          Collect customer details during Customer Due Diligence (CDD) or Know Your Customer (KYC) onboarding.

          Key data fields include:

          Full Name

          Date of Birth

          Nationality

          Address

          Identification Numbers (Passport, PAN, etc.)

          Business/Organization details (for entities)

          2. List Aggregation

          Sanction screening uses updated lists from official authorities like:

          OFAC (U.S. Office of Foreign Assets Control)

          UN Sanctions List

          EU Sanctions List

          UK HMT Sanctions List

          Local regulators (e.g., SEBI, RBI in India)

          Third-party list providers (e.g., World-Check, Dow Jones, Refinitiv)

          3. Screening Types

          There are two main types of sanction screening:

          a. Customer Screening (Name Screening)

          Performed during onboarding and periodically (Ongoing Due Diligence).


          Checks customer names against sanctions lists.

          b. Transaction Screening

          Real-time screening of transactions (e.g., SWIFT messages).

          Verifies that sender/receiver names, intermediaries, and involved countries are not sanctioned.

          4. Matching Logic

          Uses logic and algorithms to match names (considering spelling variations, aliases, transliteration).

          Uses phonetic and linguistic rules.

          5. Alert Generation

          If a match is found, the system raises an alert.

          Alerts can be:

          True Positive: Legitimate match

          False Positive: Non-matching individual/entity that appears similar

          6. Alert Review and Escalation

          Compliance analysts investigate alerts using:

          Customer KYC documents

          Additional screening tools

          Public databases (e.g., news, registries)

          Actions taken:

          Escalate to MLRO (Money Laundering Reporting Officer)

          File STR/SAR (Suspicious Transaction Report)

          Block/hold transactions

          Report to regulators

          7. Ongoing Monitoring

          Periodic re-screening of customers as part of Ongoing Due Diligence (ODD).

          Sanction lists are updated frequently – systems must stay up-to-date.

          8. Record Keeping & Audit

          Maintain logs of:

          Screening results

          Decisions taken

          Alert resolution process

          Regulatory filings

          Tools Used

          Dow Jones Watchlist

          Refinitiv World-Check

          Fircosoft

          LexisNexis Bridger Insight

          Accuity

          SAS AML

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          AML/KYC Interview Questions: Advanced Preparation Guide (2025 Edition)

          AML/KYC Interview Questions: Advanced Preparation Guide (2025 Edition)

          AML/KYC Interview Questions: Advanced Preparation Guide (2025 Edition)

          Last Updated on Jun 03 , 2025, 2k Views

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          AML / KYC

          AML/KYC Interview Questions: Advanced Preparation Guide (2025 Edition)

          If you're targeting roles in Transaction Monitoring, Compliance, or Due Diligence — these 15 advanced questions will help you stand out in interviews

          Top 15 Advanced AML/KYC Questions & Answers

          1. What is FATF?

          The Financial Action Task Force sets international standards to prevent money laundering and terrorist financing.

          2. False Positive vs. False Negative?

          False Positive: Genuine transaction flagged incorrectly

          False Negative: Suspicious transaction that goes undetected

          3. What is a Correspondent Banking Relationship?

          When one bank provides cross-border services to another — considered high-risk due to lack of direct oversight.

          4. What is a Beneficial Owner in KYC?

          A person who directly or indirectly owns ≥25% of a legal entity or exercises control over it.

          5. KYC vs. CDD?

          KYC: Initial identity verification

          CDD: Ongoing monitoring and risk assessment

          6. What is Smurfing?

          Splitting large illicit funds into smaller transactions to evade detection.

          7. What is a Risk-Based Approach (RBA)?

          Tailoring due diligence intensity to customer risk — focusing more on high-risk profiles.

          8. Structuring vs. Smurfing?

          Structuring: Breaking up transactions to avoid thresholds

          Smurfing: Using multiple people to do so on behalf of one party

          9. What is Trade-Based Money Laundering (TBML)?

          Using trade (falsified invoices, mispriced goods) to conceal illicit funds.

          10. What is an Ultimate Beneficial Owner (UBO)?

          The individual who ultimately benefits from or controls a company, even behind layers of ownership.

          11. What is Ongoing Monitoring?

          Post-onboarding transaction and profile reviews to detect new risks.

          12. Purpose of Customer Risk Rating (CRR)?

          To classify clients as Low, Medium, or High risk and apply appropriate controls.

          13. What is PEP Screening?

          Identifying Politically Exposed Persons to mitigate corruption and reputational risk.

          14. What is a Watchlist in AML?

          A list of entities or persons flagged for sanctions, criminal history, or financial risk.

          15. What is a Suspicious Activity Report (SAR)?

          A confidential report filed with authorities to flag transactions that raise suspicion.

          Save this guide if you're prepping for a role in AML, KYC, or Financial.

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          How AML KYC work & what are the Different Process

          How AML KYC Work & What are the Different Process

          Anti Money Laundering

          Last Updated on May 23 , 2025, 2k Views

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          Anti Money Laundering

          How Anti-Money Laundering Really Works (and why you should care)

          AML isn’t just paperwork.

          It’s a 24/7 defense system against financial crime.

          Here’s what actually goes on behind the scenes:

          1. Customer Due Diligence (CDD)

          Basic ID checks

          Verify address + source of funds

          If you’re low-risk, you get the fast lane

          2. Enhanced Due Diligence (EDD)

          High-risk customer? Welcome to the deep dive.

          Think: Politically Exposed Persons (PEPs), offshore accounts

          More documents. More scrutiny. More time.


          3. Ongoing Monitoring

          Every. Single. Transaction. Is. Watched.

          Spotted a weird transfer at 2 a.m.? That’s a red flag.

          Patterns matter — not just one-offs.

          4. Suspicious Activity Reports (SARs)

          Something doesn’t feel right?

          Compliance flags it + files a SAR

          Goes straight to the regulators — no debate

          5. Sanctions Screening

          Global watchlist checks on every customer

          Match a sanctioned entity?

          Your account is frozen. Instantly.

          6. KYC Refreshes

          “Know Your Customer” isn’t a one-time event

          Periodic updates (especially if risk increases)

          New job? New country? New scrutiny.

          Real Talk:

          AML is not a checkbox.

          It’s a living, breathing system that evolves with every risk signal.

          Now imagine doing all this without automation?

          (That’s why RegTech is booming.)

          If you’re in FinTech, Compliance, or Legal—

          You need to know this process inside out.

          What is The Latest in Automation Testing

          What is The Latest in Automation Testing

          What is The Latest in Automation Testing

          Last Updated on Jan 09, 2025, 2k Views

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          Automation Testing Course

          Automation Testing

          Automation testing is rapidly evolving, with several key trends shaping the landscape in 2025:

          1. AI-Augmented Testing

          Artificial Intelligence (AI) is increasingly integrated into testing processes to enhance efficiency and accuracy. AI-driven tools can automatically generate test cases, identify defects, and predict potential problem areas, streamlining the quality assurance process. KEYSIGHT TECHNOLOGIES

          2. Scriptless and Codeless Automation

          There's a growing shift towards scriptless and codeless testing frameworks, enabling testers to create and execute tests without extensive programming knowledge. This democratizes test automation, allowing broader team participation and faster test creation. TESTSIGMA

          3. DevTestOps Integration

          The convergence of Development, Testing, and Operations—known as DevTestOps—is becoming more prevalent. This approach emphasizes continuous testing throughout the development lifecycle, ensuring that quality assurance is integral from the outset. TURING

          4. Multimodal AI in Testing

          The advent of multimodal AI, which processes various data types like text, images, and speech, is enhancing test automation capabilities. This technology enables more comprehensive testing scenarios, improving the robustness of automated tests. TESTGUILD

          5. Autonomous Testing Agents

          Research is exploring the use of autonomous agents powered by large language models to perform intent-driven testing, particularly for mobile applications. These agents can autonomously set testing goals and interact with applications, increasing testing efficiency. ARXIV

          6. Enhanced Test Automation Tools

          The market is witnessing the emergence of advanced test automation tools designed to meet modern testing needs. For instance, Testsigma offers a low-code, AI-driven platform that supports web, mobile, and API testing, integrating seamlessly with popular CI/CD tools. WIKIPEDIA

          These developments indicate a dynamic future for automation testing, with AI and advanced tools playing pivotal roles in enhancing software quality and delivery efficiency.

          What are the Top 5 Rpa Tools of 2025

          Robotics Process Automation using UiPath

          What are the Top 5 RPA Tools

          Last Updated on Jan 09 2025, 2k Views

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          Robotic Process Automation

          As of January 2025, the top Robotic Process Automation (RPA) tools are:

          UiPath

          Renowned for its comprehensive automation platform, UiPath offers a user-friendly interface with drag-and-drop functionality, making it accessible for both technical and non-technical users. It supports automation across desktop, web, and mobile applications, and integrates seamlessly with various third-party applications. UiPath is highly scalable, suitable for automating simple to complex workflows, and provides robust security features, including end-to-end auditing and data encryption.

          Automative Anywhere

          This platform combines traditional RPA with intelligent elements like machine learning and natural language processing. It features a user-friendly interface with scriptless technology and drag-and-drop functionality, enabling users to create and deploy bots without extensive coding knowledge. Automation Anywhere offers scalability and flexibility, making it suitable for businesses of all sizes. Its IQ Bot enhances automation processes by handling unstructured data, and it provides access to a marketplace of pre-built bots for various use cases.

          Blue Prism

          Known for automating complex, end-to-end business processes, Blue Prism utilizes virtual robots and offers a visual designer with drag-and-drop capabilities. It provides features like load balancing, centralized management, and data encryption, ensuring secure and efficient automation. Blue Prism is scalable, allowing for the automation of numerous processes within a business, and supports integration with various applications and systems. Its digital workforce operates 24/7 with high accuracy, enhancing service quality and operational efficiency.

          Microsoft Power Automate

          Formerly known as Microsoft Flow, Power Automate is a cloud-based solution that enables businesses to automate repetitive tasks and streamline processes without the need for advanced coding skills. It integrates seamlessly with a wide range of Microsoft and third-party applications, offering a simple drag-and-drop interface and numerous pre-built templates. Power Automate is scalable and includes process mining capabilities for visualizing and assessing business processes.

          Kofax RPA

          An AI-powered tool, Kofax RPA allows users to build, deploy, and manage intelligent robots without the need for coding. It combines business process management, process mining, cognitive document automation, and RPA to automate information-intensive processes. Kofax offers a unified robot designer, centralized administration, and cognitive document automation with embedded AI and machine learning capabilities. It supports the design of lightweight web-based business applications for robot execution and provides scalability to meet varying business needs.

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          Automation Testing Vs Manual Testing

          Automation Testing Vs Manual Testing

          Automation Testing vs Manual Testing

          Last Updated on Jan 08, 2025, 2k Views

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          Automation Testing Course

          Automation Testing

          Automation Testing and Manual Testing are two primary approaches to software testing, each with its distinct characteristics, advantages, and use cases. Here's an overview:

          Automation Testing

          Automation testing involves using specialized tools and scripts to perform tests on a software application without human intervention.

          Key Features:

          Tool-Based: Tools like Selenium, Appium, JUnit, TestNG, and Cypress automate test cases.
          Repeatable: Ideal for repetitive tasks, such as regression testing.
          Fast Execution: Significantly faster than manual testing for repetitive tasks.
          Scripted: Requires the creation and maintenance of test scripts.
          Coverage: Enables testing of large test suites in less time.

          Advantages:

          Efficiency: Reduces testing time for complex and repetitive test cases.
          Reusability: Scripts can be reused for different test cases and builds.
          Consistency: Eliminates human errors due to fatigue.
          Cost-Effective (long-term): Though the initial setup is expensive, it reduces costs over time.

          Disadvantages:

          High Initial Investment: Requires tools, setup, and skilled personnel.
          Limited Scope for Exploratory Testing: Cannot handle random or unexpected scenarios effectively.
          Maintenance: Scripts need regular updates to adapt to application changes.

          Best Use Cases:

          Regression Testing
          Performance Testing
          Load Testing
          Repeated Test Cases
          Large-scale projects with frequent updates

          Manual Testing

          Manual testing involves human testers executing test cases without the use of tools or automation.

          Key Features:

          Human-Driven: Testers manually perform all operations.
          Exploratory: Best suited for scenarios that require human intuition and creativity.
          Slower Execution: Testing takes longer compared to automation.
          Adaptability: Can be adjusted in real-time based on observations.

          Advantages:

          Flexibility: Easily adaptable to changes in requirements.
          Better for Usability Testing: Allows for subjective assessments of user experience.
          Low Initial Cost: Requires minimal setup and tools.
          Exploration: Effective for finding unexpected issues.

          Disadvantages:

          Time-Consuming: Slower for large test suites.
          Inconsistent: Human errors can lead to inconsistent results.
          Scalability Issues: Hard to scale for large projects or frequent updates.

          Best Use Cases:

          Exploratory Testing
          Usability Testing
          Ad-hoc Testing
          Small-scale or one-off projects
          Initial testing phases to understand requirements

          Conclusion

          Use automation testing when projects involve repetitive tasks, require faster execution, and demand scalability.

          Opt for manual testing when human insight is needed, such as in exploratory or usability testing.

          A combination of both approaches, known as hybrid testing, is often the most effective strategy for comprehensive software testing.