Targeted H1 title based on keyword group ​​

Transaction monitoring is critical to the financial system. It helps institutions to detect and investigate suspicious transactions and report them to the relevant authorities. This helps to identify bad actors and keep the financial system safe. Transaction monitoring is a regulatory obligation for all regulated financial institutions.

Detect. Using methods, usually rules, to identify unusual or suspicious transactions that are flowing through the financial system. Examples include unusually high value transactions, or money flowing to/from restricted countries.

Investigate. The process of analysing a suspected suspicious transaction and the associated transaction data, and the data of the involved parties, to determine if it is truly suspicious or a genuine transaction (aka. a false positive).

Report. Notifying the relevant authorities (local Financial Intelligence Unit - FIU) of the suspicious transaction and handing over information you have gathered to aid them in further investigations into the incident.

Continuous Monitoring. Ongoing monitoring of the same accounts to identify any further incidents of suspicious behaviour.

1. The high volumes of false positive alerts that are generated causes a lot of strain on compliance teams; they spend too much time investigating transactions that turn out to be genuine.

2. Siloed KYC and transaction data. In order to make informed and accurate decisions on suspicious activity it is crucial that you have access to both KYC and transaction data for clients. KYC information forms the basis for how we determine if transactions are suspicious in many cases. For example a person with a monthly income of €5k suddenly receives €20k into their account, this can be deemed suspicious as it is unusual activity for their account.

3. Poor data analytics, dashboards and reporting are a real problem for compliance managers. Without the ability to analyse trends in suspicious activity or performance in detection scenarios it is impossible to adjust and improve to effectively lower false positive rates.