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You’ve got them through KYC, how do you ensure they don’t turn rotten? AML Transaction Monitoring: Best Practices

Financial Crime is multi-faceted, criminals seek to exploit all the links in the chain to achieve their illicit aims. As the world has become digital, the opportunities for the criminal have further increased, challenging organisation's of all shapes and sizes, all across the globe.

Onboarding a customer can often be the cumbersome part of building a relationship, but once onboarded there is potential for things to go wrong. This could be through the customer itself (first-party fraud or money laundering) or from bad actors who have gained access to the genuine customer's account.

As such, profiling customer activity post-onboarding is critical as part of firm’s financial crime defences. Transaction Monitoring is pivotal to building trust with customers and protecting the firm from financial losses and regulatory breaches. Let's dive in a bit deeper to discuss how firms can leverage the benefits from Transaction Monitoring with Signicat. 

What is AML Transaction Monitoring? The Basics

Transaction Monitoring uses intelligent analytics to profile money movements, to determine the potential for risk outside standard behavioural norms of the client, or the client base as a whole. 

Think of it as your own private security detail against shady money movers, with a potential to operate at exponential scale. Most AML transaction monitoring systems will determine that the vast majority of behaviour is positive, but a small percentage could be toxic, resulting in serious outcomes.

In the current climate, we continue to see the risks from AML breaches but also huge financial losses from fraud and financial crime, driven largely through sophisticated social engineering of consumers and businesses. The UK has been hugely impacted by unauthorised fraud for a number of years, representing what is now the largest contributor to fraud losses in the financial sector. 

Transaction Monitoring has to the potential to help reduce fraud and Money Laundering at the same time, with intelligent rules that can work across all payment methods and wider customer behaviour.  

Key Ingredients of Signicat’s Powerful AML Screening Software

  1. Leveraging Onboarding Insights: 

    Many Signicat Riskflow customers use pre-boarding fraud AML screening software early in workflows. This is to allow bad actors to be removed as early as possible and to avoid wasting too much time, money and resource in what is essentially waste. Those that get through the gate will then go on to perform the relevant ID and AML checks to complete the onboarding journey. However, when onboarded, many of the attributes collected can be retained as ‘digital breadcrumbs’ that can be utilised for downstream Transaction Monitoring and anti-money laundering screening.

     

  2. Transaction Monitoring AML: 

    Signicat’s Transaction Monitoring System enables clients to programmatically monitor the most granular details related to their customer transactions and trigger the appropriate action. Anomalies such as unusually large transactions, unusual time or location, sudden changes in transaction behaviour, or patterns that match known money laundering techniques can be flagged in real time.   

     

  3. Reporting and Compliance: 

    Your AML reporting officer is the hero documenting and reporting suspicious transactions to the authorities! Signicat’s AML transaction monitoring software provides granular reporting as well as audit trails, ensuring that your AML reporting officer can efficiently document and report AML suspicious transactions. Our AML monitoring systems generate detailed reports that highlight AML transaction monitoring red flags and anomalies detected during the transaction monitoring process in AML.  These reports are crucial for compliance with AML screening requirements and help your AML transaction monitoring analyst in identifying and documenting suspicious activities. 

Best Practices for Top-Notch Monitoring Transaction Monitoring Anti Money Laundering 

  • Use the Best AML Monitoring Tool: Join global customers like Funding Circle and Visa in using the best KYC AML screening tools in the market Riskflow Orchestration by Signicat – all your RegTech in one place.
  • Set AML Transaction Monitoring Best Practices: Detailed AML transaction monitoring rules and procedures are a must. From transaction thresholds to high-risk areas, having clear guidelines helps. 

  • Train Your Team in AML Screening API: Your team should be well-trained and up-to-date with the latest AML transaction monitoring requirements and best practices. Regular training sessions are key! 

     

Advanced AML Monitoring Solutions for the Win 

Signicat has got your back with state-of-the-art AML transaction monitoring solutions. 

RiskFlow Orchestration helps streamline compliance and AML screening processes and reduce customer friction, integrating smoothly with your existing workflows. RiskFlow Orchestration leverages over 240 data sources to optimise workflows for anti-fraud, anti money laundering transaction monitoring, AML transaction screening and monitoring, and compliance AML KYC & Monitoring and screening. By automating and tailoring your AML transaction monitoring procedures, it enhances operational efficiency, reduces fraud rates, and boosts customer onboarding experiences.

Download Our eBook in AML Transaction Monitoring Software

To dive deeper into the latest advancements in anti money laundering transaction monitoring and discover how Signicat can help keep your organisation compliant and secure.

Take a proactive stance, mitigate risks and ensure global regulatory compliance. Invest in the right AML monitoring tools, stay ahead of the game, and keep those money launderers at bay!