Continuous monitoring is the process that financial companies take to ensure that their business relationships are consistent in order to keep their information about their customers up-to-date. Firms should check whether their customers are performing transactions as expected of them. For example, a student's monthly processing capacity is expected on average. The expected transaction volume from the person is determined while creating a new customer. As long as the customer stays in the company and makes transactions, he should make transactions as expected from him. Otherwise, there is a risk. Financial companies check whether their customers align with expectations, thanks to "Ongoing Monitoring."
Many firms must regularly screen their customers for changes in the politically exposed person (PEP), sanctions, and negative media. Automating this process is crucial to the company's AML/CFT efficiency. Firms should also conduct event-based research.
New regulations are published frequently by international regulators. In addition, fresh news about PEPs and political figures are published in the media every day. It is impossible to follow these regulations and information manually. In addition, this follow-up leads to a severe waste of time. In such works that cannot be followed manually, using the necessary software provides many efficiencies for companies.
The ongoing processing processes are as follows;
- Controlling changing business relationships
- Monitoring frequently renewed sanctions, PEP lists, media, and assessing customer risk
- Determining whether customers' activities are consistent with KYC and customer risk assessment.
Situations Where Ongoing Monitoring be Required;
Customer profiles don't always stay the same. It does not mean that your regular customer will always trade at similar rates. This person may gain PEP status by holding a political office. An overseas customer can be on the updated FINTRAC watchlist. Adverse media reports such as bribery and corruption may emerge about a person over time.
Countries can block some of their companies and impose sanctions on these companies. It is undesirable to do business with such companies or individuals. Your client may be in one of these companies, or their name may be sanctioned over time.