A transaction monitoring (TM) solution focusing on Anti-money laundering (AML), Fraud or Responsible Gambling, provides financial institutions with the tools to monitor customer transactions and identify risky or suspicious transactions effectively in real-time.
The role of a transaction monitoring solution is to:
- Provide a clear and precise process to tackle AML, Fraud and responsible gambling risks
- Reduce false positives through a risk-based approach
- Identify and alert on behavioural changes in a customer’s transaction profile
- through his or her transactions when compared to a statistical profile built up from historical data.
- Automatically identify and create alerts relating to customer anomalies or outliers.
- Compute running values and statistics to define complex scenarios that need to consider past activity.
How Transaction Monitoring Software Works
When monitoring transactions for AML, Fraud and/or Responsible Gambling, the software needs to consider many different elements of a transaction:
- Deposits and withdrawals
- International wire transfers
- Currency exchanges
- Credit extensions
- Any kind of payments in or out of a single or multiple accounts
At the same time, the system is ‘learning’ from the data flowing through and the actions being taken by staff. Based on this, the system will be able to predict your customers activity, observe and act on unusual or out-of-the-ordinary transactions or behaviour, alerting the respective teams for further action.
Traditionally TM solutions are disconnected systems with very manual and inefficient processes which have disjointed ‘silos’ of information.
A ‘connected’ and efficient TM solution provides a platform and structure where all the modules are able to ‘talk’ to one another seamlessly, allowing businesses to identify and gather all the relevant information which has been flagged and collected into a single platform providing a single source of truth, allowing analysts to build case and generate reports (RFI, SAR, STR, etc) for the respective FIU’s all within the same solution which saves an incredible amount of time, energy and complexity.
Businesses today require a ‘holistic’ view of each and every customer and their ‘transactional’ behaviour which provides the organisation with crucial information relating to risk level, expected future activity or a deviation from the users’ standard activity which is based off of the system generated statistical profile for the respective customer.
Some of the key benefits of a TM solution are:
- Adhere to global regulations
- Uphold business reputation
- Ensure the customers experience is exceptional
- Reduce Risk
ComplyRadar is a ‘connected’ solution which utilises a full risk-based approach to remove the risk of disrupting genuine customers, alerting to possible risks or illicit behaviour.
ComplyRadar encompasses a sophisticated, yet balanced level of automation and intelligence with human interpretation, providing organisations with a level of control and visibility which all contribute towards reducing false positives.
The solution provides the structure and tools and drill-down facilities to investigate the customer or individual, through a feature-rich case management module, gathering information and storing all the data within a central platform. Reporting on transactions or filling SARs / STRs with the FIU has never been easier based on all the modules being connected and the data being available all within the same platform.
Reach out to us for additional information on ComplyRadar and how we can assist with your transaction monitoring requirements.