What is AML Transaction Monitoring?

Transaction Monitoring helps financial institutions instantly monitor customer transactions and is the most effective way for financial institutions to combat financial crime. AML Transaction Monitoring helps companies comply with AML (Anti-Money Laundering) / CFT (Counter Financing of Terrorism) regulations and supports compliance programs.

What is The AML Transaction Monitoring Process?

Millions of financial transactions take place around the world a day. Financial Institutions can control billions of transactions instantly by automating the transaction monitoring process flow. The AML Transaction Monitoring process is a legal requirement for businesses under AML obligations. Companies create a rule system based on their needs. If a situation triggers these rules during customer transactions, the transaction monitoring software generates an alarm. When the software generates an alarm, the process is automatically stopped and examined in detail by the Compliance or Risk Department. If they detect crime in the customer transaction, it reports transactions to AML, CFT, and KYC regulators. This report is called a Suspicious Activity Report (SAR).

Suspicious Activity Report (SAR)

Anti-Money Laundering Transaction Monitoring software also has an important place for the Suspicious Activity Report (SAR). The transaction Monitoring unit is automatically intervened when creating an alarm for suspicious situations, and the transaction is examined in detail by the Firm's Compliance or Risk Department. At this point, if SAR comes into play and detects crime in the customer transaction, suspicious transactions are reported to the AML, CFT, and KYC regulators.

Currency Transaction Report (CTR)

Currency Transaction Report (CTR) is part of the banking industry's anti-money laundering (AML) responsibilities. AML software programs automatically generate a CTR for the bank when a bank processes more than $ 10,000. Banks are not obliged to tell the client a $ 10,000 reporting threshold. However, when the client refuses to continue with the transaction after being informed about the CTR, the bank employee must create a SAR file.

Why is Transaction Monitoring Important for AML?

With technology, the methods of financial crimes began to change. The majority of financial crimes occur through the system. Criminals detect gaps in financial systems and commit crimes such as money laundering and terrorist financing. Financial institutions can't prevent these crimes with manual solutions. With AML Transaction Monitoring, companies automatically monitor their customers' transactions such as deposits, withdrawals, and money transfers. Companies can present these controls as evidence in the audits. Thus, financial institutions can ensure compliance with "Anti-Money Laundering" and "Know Your Customer," which is part of the AML Compliance Program.

Transaction Monitoring And AML Regulations

There are many local and global Anti-Money Laundering regulations that companies must comply with. Compliance programs provide the regulatory requirements for companies. AML compliance programs help companies fight financial crimes. With AML Transaction Monitoring tools, you can detect money laundering activities that will occur in financial transactions.

Suspicious Activity Reports (SAR) are part of anti-money laundering laws and money laundering regulations becoming increasingly stringent. The U.S. Patriot Act has increased SAR requirements to combat global and local terrorism. A Suspicious Activity Report (SAR) is made by the financial institution when suspicious activities occur in an account. The prepared report is sent to the Financial Crimes Enforcement Network (FinCEN), a part of the U.S. Treasury. The global financial institution Financial Action Task Force (FATF), related to AML / CFT procedures, like other regulators, emphasized that financial transactions made in its recommendations should be screened.

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

False positives are an important problem for firms. AML Transaction Monitoring Process can give false-positive alerts. With Sanction Scanner's powered transaction monitoring screen, you can see all operations related to AML&KYC. Meet the banking and e-money partners' requirements, compliance officers, regulators, and auditors with an electronic audit trail of all system and user actions with the date and time stamps and user actions with the date and time stamps. AML Transaction Monitoring in banks can create dynamic rules and scenarios with advanced features and test them with the sandbox testing environment. With customizable settings, banks streamline transaction monitoring process flow and reduce AML false positives. You can contact us for detailed information.

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