What is AML Transaction Monitoring?

Transaction Monitoring helps financial institutions monitor their customers' transactions and is the most effective way to fight against financial crimes. AML Transaction Monitoring helps companies comply with AML (Anti-Money Laundering) CFT (Counter Financing of Terrorism) regulations and supports their compliance programs.

What is The AML Transaction Monitoring Process?

Millions of financial transactions take place around the world every day. Financial Institutions can monitor billions of transactions by automating the transaction monitoring process. The AML Transaction Monitoring process is a legal requirement for businesses under AML obligations. 

Companies should set rules that will alarm when they are getting triggered. For example, the rules can be how much money a customer can transfer based on their risk levels. The system should stop the action and write a report to the company so the Compliance Department of companies can examine the action. Suspicious transactions are reported to regulators. The report paper written for regulators is called Suspicious Activity Report (SAR)

Bank Secrecy Act

Financial institutions must assist the regulators in detecting and preventing money laundering and terrorist financing according to the BSA, to monitor their customers' transactions instantly, they must prepare a report and report suspicious activity if their daily transactions exceed 10,000 dollars.

Suspicious Activity Report (SAR)

A Suspicious Activity Report is written when a transaction triggers a rule that companies set to meet the AML Compliance. Suspicious Activity Reports are collected to be reported to AML, CFT, and KYC regulators.

Currency Transaction Report (CTR)

Currency Transaction Report (CTR) is a part of the banking industry's anti-money laundering (AML) responsibilities. AML software programs automatically write a CTR for the bank when a customer transfer more than $10,000. However, banks are not obliged to inform their clients of a $ 10,000 reporting threshold. 

Why is Transaction Monitoring Important for AML?

Financial criminals started developing more advanced money laundering methods as technology advanced. Criminals detect gaps in financial systems and commit crimes such as money laundering and terrorist financing. It is hard for financial institutions to detect and prevent these financial crimes. However, companies can automatically monitor their customers' transactions, such as deposits, withdrawals, and money transfers, and can present any suspicious activity as evidence. Thus, financial institutions can ensure they meet AML Compliance requirements using AML Transaction Monitoring.

Transaction Monitoring And AML Regulations

Companies must comply with many local and global Anti-Money Laundering regulations imposed to fight against financial crimes. Compliance programs help companies meet the AML Compliance they are required.

Companies can detect suspicious financial activities using AML Transaction Monitoring and write a SAR to report the activity to local regulators such as  Financial Crimes Enforcement Network (FinCEN) and global regulators such as Financial Action Task Force (FATF)

The U.S. Patriot Act has increased SAR requirements to fight against international and local terrorism.

What Does Transaction Monitoring Detect?

  • Money Laundering
  • Terrorist Financing
  • Fraud
  • Drug Trafficking
  • Bribery
  • Corruption
  • Identity Theft

Who Needs Transaction Monitoring?

  • Money Services
  • Banks
  • Money Transfer Companies
  • Insurance Companies
  • Real Estate Agents
  • Legal Professionals
  • Trust Offices
  • Law enforcement agencies
  • Accountants and Accounting Firm
  • Financial Service 

Reduce False Positives in Transaction Monitoring Systems

AML Transaction Monitoring Process can give false-positive alerts, making AML Compliance difficult for companies. However, organizations can monitor transactions, set rules that will alarm them when triggered, and see their AML & KYC-related operations using Sanction Scanner's Transaction Monitoring. A reliable transaction monitoring software reduces AML false positives and the workload of AML Compliance officers. You can contact us for detailed information.

Prevent Money Laundering With Sanction Scanner!