A well-designed transaction monitoring program is an important pillar of a strong anti-money laundering (AML) compliance program. It supports efforts to combat money laundering and terrorist financing by helping financial institutions identify unusual or suspicious activity that must be reported to regulatory authorities and aids in law enforcement’s tracking and prosecution of criminals involved in money laundering and terrorist financing.
This white paper examines the consequences of implementing inadequate AML transaction monitoring programs and some of the common myths about monitoring systems. Also discussed are factors management should consider before implementing a monitoring system and issues critical to a successful implementation. Additionally, this paper addresses post-implementation steps for maintaining the AML transaction monitoring system to ensure it remains efficient and effective.