AML Transaction Monitoring

Transaction monitoring (TM) refers to monitoring customer transactions, including assessing historical/current customer information and interactions, to provide a complete picture of customer activity. The key challenge for FIs is ensuring quality, accuracy and consistency when handling alerts generated by TM systems. Our team of analytical investigators have helped clients implement effective TM systems across the board. Our process is as follows:

i. Level 1 alerts:The first stage of AML Transaction Monitoring entails Identifying and validating an alert, and checking whether the alert can be discounted or confirming the alert is “true” and requires a thorough investigation..

ii. Level 2 alerts: Reviewing and validating alerts sent by the Level 1 team. Based on the alert, Level 2 investigators create a case to determine the nature of the alert activity (such as anomalous activity or high-risk transfer) and ascertain whether to report the activity to MLROs for SAR/STR filing or close the alert. Activities at this level will include a holistic investigation of the customer, transaction activity and other associated entities which forms the second stage of AML Monitoring.

iii. Level 3 alerts: Reviewing the cases from Level 2 investigators and validating their findings. After ensuring the cases are accurate and compliant, supporting with compiling SARs/STRs.