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5 Questions to Get Transaction Monitoring Working For You

When it comes to transaction monitoring software, you have no choice in the matter – you need it! Manual processes can simply no longer keep up with AML rules and regulations. Which means Regulatory Technology is now your armour, and transaction monitoring your shield.

But while rules-based software is all very well, at the end of the day it can only do what it’s told. If your solution is inexpertly programmed, implemented, or utilised, you may find your transaction monitoring software is less full-body armour and more paper hat!

The 5 questions to ask of your Transaction Monitoring Software

1) Does it meet the 6 basic criteria?

Firstly, your transaction monitoring software must meet the 4 Cs and the 2 Ss. Ask yourself:

  • Clear Is the software easy to understand and simple to use?
  • Current Is your transaction profile always up-to-date, and processing relevant amendments in the correct timeframe?
  • Complete Does it include all bank account numbers, names of beneficiaries, authorised payments etc?
  • Captured Are all processes correctly recorded for future reference?
  • Specific Are expected money flow and payment limits clearly delineated?
  • Substantiated Is it supported by documentation that illustrates and explains anticipated transactions?

2) Are your KYC procedures in place?

KYC and transaction monitoring tools go hand-in-hand. Both must be fully integrated to ensure that onboarding information effectively informs the parameters of the transaction profile.

3) Is Big Data working for or against you?

Big Data is information that contains huge variety, arriving in increasing volumes with immense speed: basically, the complex data sets which feed your transaction monitoring software.

With the right software and the correct implementation, this big data becomes a huge asset, providing you with a succinct picture of each client’s transactions and delivering on-point risk assessment. But with the wrong software or incorrect implementation, you’re left with an ever-increasing cascade of incomprehensible information.

4) Is your documentation in order?

Your transaction monitoring software should be maintaining and updating all the documentation you require. This includes the reasons transactions were selected for scrutiny, and which components were considered suspicious. If the auditors show up at your door with criminal investigation in mind, the right software will immediately allow you to access the exact records you need.

5) Are your risk assessment parameters correct?

Lastly, your transaction monitoring software needs the correct parameters. Regulatory technology, when used effectively, is simply the best tool around for detecting suspicious patterns and reviewing dubious transactions. The correct software will be able to save you a huge amount of time and effort by automatically assigning a risk level to each client. But if your risk assessment parameters are incorrectly set, you’re opening yourself up to criminal charges. Worth checking, right?

As a boutique company that tailor-makes, implements and maintains your Regulatory Technology solutions, iSPIRAL is the region’s leading provider of transaction-monitoring software.

We’re experts in knowing not just what works, but what works for you – hence our distinguished clientele, which includes Bank of Cyprus, KPMG, Hellenic Bank, and JCC Payments. From the RegTek+ AML Transaction Monitoring software itself (which utilises both rule-based scenarios and advanced machine-learning algorithms to create dynamic rules on a wide scale), to individually customised scenarios and a personalised set-up process, we’re here to ensure that your company remains protected, and the process of compliance is effortless.

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