Managing transaction monitoring processes solely through manual efforts is simply unrealistic for anti-money laundering (AML) professionals.
The high volume and increased complexity of transactions contribute to a growing demand for an automated solution.
This isn't just about operational efficiency. The purpose of conducting transaction monitoring is to identify instances of money laundering.
Although difficult to estimate, it's believed that between $800 billion and $2 trillion is laundered annually, representing about 2-5% of the global GDP, a significant portion of the world's economic output.
Criminals are getting more creative when laundering money. Manual methods alone cannot adequately address the increasing challenges that AML professionals face.
This is why transaction monitoring software automates the process, which is essential for effective AML. But how can you know which transaction monitoring solution suits your business?
In this article, we'll discuss transaction monitoring software, some of its key components, and tips on what to look for when choosing it.
Transaction monitoring software, also known as a transaction monitoring system, is a solution that monitors, analyses, and evaluates customer behaviours and transactions.
Financial institutions use transaction monitoring software mainly to detect suspicious activities that could lead to financial crime, partly to protect their business and customers and partly because they are legally obliged to do so.
Generally, modern transaction monitoring software can automate the detection of the following red flags:
There are various transaction monitoring solutions designed to meet the specific needs of each business, so the features can vary depending on what you and your AML team require to conduct effective transaction monitoring.
For example, here are some common capabilities of Trapets Transaction Monitoring:
With numerous solutions available in the market, choosing the ideal transaction monitoring software for your company can become an overwhelming task.
Choosing the right software requires thorough research to effectively address risks your company may face and combat financial crime.
To help you in your transaction monitoring journey, here are some key features your software should offer:
Transaction monitoring software helps you and your team not only improve operational efficiency and reach regulatory standards but also assists you in reaching the ultimate goal of combating financial crime.
However, with a wide variety of transaction monitoring solutions available, it can be challenging to determine the right fit for your business needs.
Trapets Transaction Monitoring helps you automatically detect and identify suspicious activities, allowing you to comply with regulations and effectively fight financial crime.
To learn more about how Trapets Transaction Monitoring can protect your business, click here. If you're still searching for an effective transaction monitoring solution, download our guide for a detailed checklist on choosing the right software.