05 June 2018
Financial crime: Four essential rules for effective transaction monitoring
By Jeremy Davey and Scott Samme
Money launderers are, by definition, a devious bunch. They quickly learn the rules that banks set to detect suspicious transactions, and adapt. They are, in other words, dynamic – so transaction monitoring should be equally so.
In our previous blog we talked about the problems with many legacy transaction monitoring (TM) systems, which tend to be rules-based. That’s not to say that rules-based systems are obsolete; but in the complex world of global finance, they’re not enough on their own. If banks are to efficiently root out complex illegal trades they need to know far more about the connections between parties to transactions. Fortunately, advanced technology and analytics allow us to do this.