AML Transaction Monitoring

Transaction Monitoring AML

7. Sophisticated Transaction Monitoring solutions become a necessity

In 2019 we will see financial regulators place an increased focus on the monitoring of AML risk activities, including a push for institutions to adopt proper transaction monitoring processes. Regulators will increasingly expect firms to be able to show not only that they have a system in place to monitor transactions but also be able to prove that it is effective.

This requirement will be driven by legislation such as the NYSDFS Part 504 as well as a general move towards controls being measured by their quality of outcome.

In 2019, the availability of new transaction monitoring software platforms which can help financial institutions configure a range of monitoring scenarios, analyze data more efficiently, and better separate genuine suspicious activities from false positives, will become essential. Firms who not only want to show the spirit of compliance but also identify suspicious behavior patterns, while cutting operational workload will gain a competitive advantage from adopting such solutions in 2019.  As Philip Creed from FSCom said:

“The benefit is that this will allow compliance teams to use their time more efficiently to focus their attention on high risk areas by investigating these anomalous transactions.”

– Philip Creed, FSCom

Tip: When selecting and implementing a transaction monitoring solution make sure that it is properly configured to your risk based approach and needs. Too often solutions don’t match up to a users requirements, causing more problems than they solve. ComplyAdvantage partners with its transaction monitoring clients to ensure our solutions work for our customers.