Transaction Monitoring Software – Defence Against Crimes

A transaction monitoring software being the pillar of the AML compliance program is fated
for enterprises to combat financial crimes. Financial institutions help in driving the national
economy but unfortunately, they have become bridge between money launderers and their
illegitimate scheme of routing illicit gains. Banking being completely digitised has provided
fraudsters with a plethora of opportunities. Not only banks but with the advent of
cryptocurrency the scale and volume of financial violations are setting new records.

The transaction monitoring software is an automated system that observes customers
transactional activities and deliver sufficient data in no time for preserving the reputation of
financial firms. Time heals everything, that’s what everyone is being told in crisis situations.
Ironically, things are getting much worse with the passage of time. Interestingly, fintech
businesses spend almost $2 trillion to combat financial offenders, on an annual basis. A
systematic transaction monitoring software can prevent whopping investments.

Significance Of KYT Verification

(Know Your Transaction) KYT solution provider with an ultrafast reporting system
automates the AML compliance and establishes a full-proof framework. During the KYC
compliance program and the AML screening, corporate firms and other financial institutes
eliminate most of the doubt about the customer intentions.

The KYC services surely never fail to impress by their remarkable features and technologies
however the transaction monitoring software is what every financial entity survives due to.
The conventional customer due diligence and AML screening are not adequate enough to
support an onboarding decision. Uncertainty and death never leave the sight of a person. It
is guaranteed that nothing comes with a guarantee. However, the transaction monitoring
software comes with full assurance to detect the client profile the moment it shows any
unusual activity.

Every customer should be trusted but with constant surveillance. The real-time transaction
reporting system is also extremely vital for the framework of EDD (Enhanced Due
Diligence). Any high-risk client indicating the possibility of money laundering and terrorist
financing is investigated via Edd banking. The minute details of both parties involved in the
transaction are authenticated to the core. The transaction monitoring software is
unavoidable for high-profile customers.

Not Only For High-Risk Clients

The KYT verification is not always held upon customers with a high-risk rating in the
preliminary KYC and AML screening. Clients of all levels are potential threats these days.
The customer without any political background or being in any global sanction can also
commit financial violations. The transaction monitoring software is responsible for
monitoring low-risk clients as well. Smurfing within the threshold range is also detected in
the AML transaction monitoring.

The concerned financial institute on the basis of the compliance program creates a CTR
(Currency Transaction Report) initially. The transaction monitoring software includes all
specific funds transfers that cross the usual threshold limit for the account. The figure is
$10,000, any transaction above is included in the CTR. The customer doesn’t get informed
initially but upon CTR being disclosed to them if the party refuses to cooperate or shows
consistent behaviour identified by the transaction monitoring software, the institute
generates a SAR (Suspicious Activity Reporting).

The SAR comprises all details of the transactions indicating money laundering and terrorist
financing. A strong AML compliance program by the financial institution is inevitable for
avoiding substantial fines from the government which is possible due to a transaction
monitoring software.

Efficient Compliance Team Transaction Monitoring

The AML program includes appointing a compliance officer or team in every financial
institute to observe protocol. The customer onboarding rate of banks and other financial
institutes is abundant and the transaction monitoring software is necessary for verifying
each transaction made by the clients to reduce the burden of the compliance officer or
team. The automated nature of the system reduces the margin of errors and retains the
image and customers of the concerned entity out there in the market.

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