What is AML transaction monitoring?

What is AML transaction monitoring

Even if you’re not directly involved in the Banking & Finance or Gambling & iGaming sectors, there’s a pretty good chance that you’ve at least heard – or read – about Anti-Money Laundering (AML). It refers to a set of laws, regulations, and procedures intended to prevent criminals from disguising illegally obtained funds as legitimate income. Even though AML laws cover a relatively limited range of transactions and criminal behaviours, their implications are far-reaching and nearly impossible to detect without the right AML transaction monitoring software.

AML transaction monitoring software helps businesses operating in the Banking & Finance or Gambling & iGaming sectors automatically monitor their customers’ financial transactions so that suspicious activity can be identified in real-time. A proper automated system will achieve the following:

  • Minimise false positives by applying a risk-based approach and adapting scenarios to customer and/or transaction risk levels.
  • Spot patterns and outliers by monitoring behaviours alongside historical transaction data and other contextual profile data.
  • Check each customer transaction against their individual profile to identify any transaction that does not meet their historical behavioural patterns.
  • Compute running values and statistics to define complex scenarios that need to consider past activity.

How AML transaction monitoring software works

AML transaction monitoring software looks at everything from deposits and withdrawals to international wire transfers, currency exchanges, credit extensions, or any kind of payments in or out of accounts. By identifying patterns over time, the system learns to predict your customer’s actions, detect any unusual (potentially suspicious) behaviour, and send out immediate alerts to your compliance team for further investigation. 

Companies big and small use this technology to fight against all kinds of fraud and money laundering including structuring, double invoicing, and round-tripping – but that’s not all it does. This sophisticated software also plays a central role in sniffing out terrorism financing and any customers who might be trying to avoid international sanctions. The main benefits of AML transaction monitoring software are as follows
 
  • Comply with global regulations
  • Protect your reputation
  • Instil a positive customer experience
  • Minimise risk exposure
  • Avoid potential fines

ComplyRadar – it pays to comply

ComplyRadar utilises a full risk-based approach to eliminate disruption to genuine customers, detect potential criminal behaviour, and demonstrate full ongoing compliance. It sends you notifications on the transactions that matter and enables you to automatically apply a full-pattern analysis to instantly see suspicious transactions in real time. You can then manage flagged transactions through a comprehensive review process leading to the filing of a SAR when required. Contact us for more information on how ComplyRadar can help you address the AML transaction monitoring requirements by automatically identifying suspicious behaviour in real-time.

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