In the past few years, transaction monitoring has become a vital part of anti-money laundering (AML) procedures. All financial institutions need to have some form of transaction monitoring in place to keep an eye out for any suspicious transactions to and from existing customers. Since this requires intensive and thorough assessment, as well as an accurate reporting structure, most organisations prefer the use of an automated system.

Why Businesses need AML Transaction Monitoring Software

Transaction Monitoring software helps financial institutions track customer transactions in an instant and automate way. It also allows tracking customer transactions that include evaluating past and current customer information and interactions to provide a complete picture of customer activities. The software helps companies comply with the Anti-Money Laundering and Counter Financing of Terrorism regulations. It supports the organisation’s compliance program by detecting suspicious patterns and examining suspicious transfers and transactions in digital currencies.

Why is transaction monitoring software important?

There are many reasons for financial service companies to implement AML transaction monitoring software. In the digital world we live in, the number of electronic financial transactions has increased enormously. As a result, money laundering activities are increasing, so AML transaction monitoring analytics is in higher demand than ever. AML compliance regulations and transaction monitoring play also a key role in detecting increasingly complex financial criminal activity. It can detect suspicious activities such as large cash deposits or wire transfers, thus, allow organisations to spot financial crimes before they happen or very early on.

The growth of various electronic payment instruments and the reduction of cash payments mean a much higher transaction volume that AML technology systems should monitor. If financial institutions choose to scan this data for manual monitoring, this will be incredibly time-consuming and error-prone, adversely affecting the customer experience.

Moreover, when financial institutions detect suspicious transactions and they report them to the authorities, regulators ask for evidence. The AML software proactively recognizes suspicious transactions, which leads to the correct presentation of suspicious activity reports (SAR). Transaction Monitoring can help companies provide evidence to regulators, auditors, and other stakeholders about the program’s operation.

Do all financial firms require Transaction Monitoring solutions?

Many firms will consider transaction monitoring to be a crucial element in their fight against financial crime, which is further highlighted in both regulation and industry guidance. Transaction monitoring is the most effective way to help financial institutions comply with AML and Counter Financing of Terrorism regulations. Often, it can be a mandatory step to fulfil your AML obligations of continuous due diligence regarding customers and their operations.

While it is not legally required worldwide for financial institutions to have transaction monitoring in place, not having one could settle an organization in a lot of trouble. A fundamental part of taking a risk-based approach is the continuous monitoring of clients. Failing to have such a system in place can not only cost a financial institution its reputation, but it can also lead to large fines and other penalties.

What is more, transaction monitoring is not enough. AML monitoring of transactions is an integral part of any AML policy. Usually, financial institutions employ a combined risk prevention solution to customer accounts — an all-round AML check.

For more insight on compliance technology options and benefits, visit and find out how our straightforward, comprehensive compliance technology solution can help you and your organisation.

About ComplyPortal:

First developed in 2011 by compliance professionals for compliance officers, ComplyPortal offers workflow, automation, and several modules to help firms with control and regulatory compliance monitoring.

ComplyPortal simplifies financial services regulatory compliance management on an easy-to-use cloud-based comprehensive compliance platform. It enables compliance officers, risk officers and senior management to keep track of their firm’s regulatory responsibilities and workflows. Our platform includes the following modules, among others:

  • Monitoring: a year-round schedule pre-populated with monitoring questionnaires to ease compliance processes.
  • Registers: lists controlled by the Compliance officer, but easy for staff to view.
  • Risk: map and control risk areas to effectively identify and manage risk for your firm.
  • eKYC solution: perform comprehensive searches, including client identity verification, document authenticity, and more for a comprehensive KYC and AML approach