AML controls fit for risk in enterprise finance

FATF recommendations push for a risk-based approach for effective transaction monitoring.  

Using a risk-based approach means that a bank is operating with AML controls that are based on the organization’s perception of risk and the level of risk that its customers pose. This varies between customers and therefore requires firms to vary their controls in proportion to the risk posed.  

Continuous improvement and optimization of the AML transaction process is required to stay on top of regulatory obligations.  

This begins with developing rules that will fuel the overall transaction monitoring process and ensure that the tool you’re using is backed by quality data sources. This way, you’re more likely to only receive alerts for instances that are suspicious, which gives your analysts more room to focus on dealing with legitimate suspicious transactions rather than wasting time on false flags.  

Using a transaction monitoring solution takes a huge load off your compliance teams. The more powerful tools use the latest in automation technology and data analytics to provide complete coverage while eliminating challenges such as false positives and keeping up with the latest techniques being employed by criminals. 

When choosing a transaction monitoring solution, it’s important to consider factors such as deployment speed, flexibility, whether it’s cloud-based, how customizable it is, and whether it enables you to fully outsource your transaction monitoring.