Transaction Monitoring – A Key Component of an Effective AML Compliance Solution

Nowadays, it has become mandatory for compliance teams to think about regulation in a holistic way, and to find ways of effectively managing the vast amount of data and information so that they can maintain a fully compliant profile.


Organisations must comply with Anti-Money Laundering (AML) rules, whose main purpose is to help detect and report suspicious activity related to money laundering and terrorist financing. This is partially done through AML transaction monitoring software. By monitoring and analysing cash deposits, withdrawals, and wire transfers, AML transaction monitoring software can provide the business with a complete picture of a customer’s profile, risk levels, and predicted future activity. It then generates reports and creates alerts to any suspicious activity.


The Need for a Holistic Approach

There is now a growing focus on monitoring every single transaction and the importance of adopting a broad-based approach towards dealing with business risk. Organisations need to be able to identify potentially unusual financial transactions which might subsequently prove to be suspicious within the context of existing anti-money laundering and financial crime interdictions. The mapping of these identifications is critical for a full picture of the client’s business profile, their commercial activities, private wealth distribution, and management structure.


Although many organisations have implemented robust and costly Know Your Customer (KYC) systems, the problem often remains in the identification of suspicious transactions.  This tends to involve submitting large amounts of alerts, many of which are false positives, without any form of analysis. Consequently, compliance teams are flooded with information that reveals very little intelligence. Therefore, transaction monitoring can’t simply be a random ‘data grab’ if it is to provide any meaningful identification of suspicious behaviour. Rather, a proper transaction monitoring solution requires an intelligent review of a client’s financial activities, with the appropriate analysis necessary to create a holistic view of financial behaviour that incorporates the principle of the 3 Vs – value, volume, and velocity of transactions.


An effective AML transaction monitoring solution is a powerful compliance tool for financial transaction analysis. It eliminates unnecessary manual work, minimises the likelihood of missing critical information, and helps organisations maintain a compliant profile.


AXON AML Transaction Monitoring

AXON helps organisations monitor transactions to detect suspicious behaviour quickly and effectively. It optimises transaction monitoring by automating processes in order to minimise unnecessary alerts, while also offering real-time tracking and reporting functionality. With AXON, compliance teams become more efficient in their monitoring of fraudulent behaviour as it saves them time from having to perform time-consuming manual tasks such as individual checks on each data source.


If you’re looking for an AML transaction monitoring solution to ensure you maintain full compliance, AXON is the answer. Contact us at Computime Software for more information. Be sure to follow us on FacebookTwitter and LinkedIn for updates!