In the world of financing, there are chances of money laundering, terrorist financing and other risks that a business cannot afford to face. In order to counter the risks of these suspicious activities, you need to have in place a proper system for transaction monitoring. We have a robust, effective and easy-to-use transaction monitoring system that can help you monitor every transaction in real-time to detect any distrustful activity and provide a seamless payment experience to your investors and customers.
An effective transaction monitoring system helps to avert terrorist financing, money laundering, and other fraudulent transactions that threaten the security and safety around the world.
Let us take a look at some of the best practices to improve any transaction monitoring system.
Client-level risk analysis: For proper transaction monitoring, you need to conduct proper risk analysis at the client level to understand a customer’s account profile and historical information. All the suitable Know Your Customer (KYC) procedures must be in place. If the right information about a client is not gathered at this point, it can be very difficult to monitor transactions and be informed about the parameters of the transaction profile. Risk analysis helps you not only save time but also increases efficiency and stops the potential loss of important information.
Transaction profiles: Another important process to improve transaction monitoring is to keep the profiles up-to-date and comprehensive. You need to support the profiles with the relevant documents which prove the expected transactions. For example, you can set the maximum and minimum transaction limits. This helps to identify unusual transactions and money flows.
Online viewing rights: Trust offices must have access to all bank accounts of their target companies (preferably digitally) for good transaction monitoring, regardless of whether they authorise payments to those accounts. A real-time monitoring system allows transactions to be reviewed before they are implemented or after via post-event monitoring. Client risk profiles should be taken into account when determining the frequency of monitoring and obtaining bank accounts.
Monitoring of rights and obligations: Using a specifically designed procedure, a target company’s rights and obligations are monitored. A form specifically designed for this purpose can be used to capture and analyse the rights and obligations of an object company.
Monitoring of all transactions: All transactions need to have adequate documentation of all monitoring and related activities. Keep a proper record that has an account of the various aspects of the transactions, the supporting documents necessary and whether the involvement of a compliance officer was necessary.
Review unusual transactions: If you come across a suspicious transaction, you would have to review previous and related transactions once more. Checking the flagged transaction will give you insights into probable unusual transaction patterns. You can review the risk and transaction profile of the client before you resume further activity.
IR Transact has a cutting-edge transaction monitoring system that lets you have control over risks to guarantee the issues related to high-value transactions are dealt with swiftly and efficiently. Visit our website to get more information about monitoring transactions and how it can be beneficial to your company.