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The vast majority of transfers flagged as suspicious by transactional monitoring systems are eventually cleared as false positives, racking up compliance costs for financial institutions and undermining their ability to identify illegal money flows, say sources. Most financial institutions show a "SAR yield"-or share of segregated transactions containing intelligence worth investigating and disclosing in suspicious activity reports-of only seven to 12 percent, according to Frederick Reynolds, global head of financial crime compliance with Barclays in New York. "Other than predicting the weather, I don't know an industry where you can be wrong 90 percent of the time and that's successful,"...