In the past few years, transaction monitoring has become a vital part of anti-money laundering (AML) procedures. All financial institutions need to have some form of transaction monitoring in place to keep an eye out for any suspicious transactions to and from existing customers. Since this requires intensive and thorough assessment, as well as an accurate reporting structure, most organisations prefer the use of an automated system.
Why Businesses need AML Transaction Monitoring Software
Transaction Monitoring software helps financial institutions track customer transactions in an instant and automate way. It also allows tracking customer transactions that include evaluating past and current customer information and interactions to provide a complete picture of customer activities. The software helps companies comply with the Anti-Money Laundering and Counter Financing of Terrorism regulations. It supports the organisation’s compliance program by detecting suspicious patterns and examining suspicious transfers and transactions in digital currencies.
Why is transaction monitoring software important?
There are many reasons for financial service companies to implement AML transaction monitoring software. In the digital world we live in, the number of electronic financial transactions has increased enormously. As a result, money laundering activities are increasing, so AML transaction monitoring analytics is in higher demand than ever. AML compliance regulations and transaction monitoring play also a key role in detecting increasingly complex financial criminal activity. It can detect suspicious activities such as large cash deposits or wire transfers, thus, allow organisations to spot financial crimes before they happen or very early on.
The growth of various electronic payment instruments and the reduction of cash payments mean a much higher transaction volume that AML technology systems should monitor. If financial institutions choose to scan this data for manual monitoring, this will be incredibly time-consuming and error-prone, adversely affecting the customer experience.
Moreover, when financial institutions detect suspicious transactions and they report them to the authorities, regulators ask for evidence. The AML software proactively recognizes suspicious transactions, which leads to the correct presentation of suspicious activity reports (SAR). Transaction Monitoring can help companies provide evidence to regulators, auditors, and other stakeholders about the program’s operation.
Do all financial firms require Transaction Monitoring solutions?
Many firms will consider transaction monitoring to be a crucial element in their fight against financial crime, which is further highlighted in both regulation and industry guidance. Transaction monitoring is the most effective way to help financial institutions comply with AML and Counter Financing of Terrorism regulations. Often, it can be a mandatory step to fulfil your AML obligations of continuous due diligence regarding customers and their operations.
While it is not legally required worldwide for financial institutions to have transaction monitoring in place, not having one could settle an organization in a lot of trouble. A fundamental part of taking a risk-based approach is the continuous monitoring of clients. Failing to have such a system in place can not only cost a financial institution its reputation, but it can also lead to large fines and other penalties.
What is more, transaction monitoring is not enough. AML monitoring of transactions is an integral part of any AML policy. Usually, financial institutions employ a combined risk prevention solution to customer accounts — an all-round AML check.
How MAP FinTech can assist
MAP FinTech’s KYC and AML Transaction Monitoring Solution is a complete Client Lifecycle Management Solution which streamlines all your day-to-day compliance operations, from Onboarding to client acceptance, transaction monitoring and screening, detecting suspicious activity and managing investigations.
A risk-based approach that fits your KYC AML requirements
The approach of risk evaluation and assessment is different depending on the regulator and the jurisdiction in which your organisation operates. Our solution delivers a comprehensive, automated risk assessment to fit your industry, business model, customer base, products and services, distribution channels, regulatory environment, and risk appetite. Our flexible and scalable platform is ideal for performing Risk Assessment for financial institutions, gaming, ICOs, shipping and marine trading organisations.
- Centralised solution
- Complete Client Profile
- Compliance Repository
- Case Repository
- Clever Technology
- Seamless Onboarding
- Ongoing Monitoring
- Minimises False Positives
- Multi-jurisdiction markets
- Workflow engine
- Effortless Implementation
- Highly configurable API
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- Machine learning and AI driven
- Ongoing Support
- Team of expert professionals
- Personalised support for all clients, leading to longstanding co-operation