Transaction Monitoring Services | AML Compliance Software | Compliance Management System

Transaction Monitoring in AML (Anti-Money-Laundering)

As the volume of transactions continues to increase, money laundering techniques become ever more sophisticated. Financial institutions face fundamental challenges in the AML screening process, suspicious activity monitoring, transaction monitoring in AML. It makes monitoring of transactions in KYC an increasingly expensive task and requires a lot of efforts. Hence, the introduction of KYC screening tools has proved a blessing for the financial industry.

What is Transaction Monitoring?

In simple words, Transaction monitoring is an Anti-Money Laundering and fraud prevention security process. It reviews and analyzes suspicious financial transfers or commercial transactions in digital and fiat currencies, ultimately exposing the origins. Various tools have made the transaction monitoring process flow much easier than before.

Why is Sanction Screening in AML important?

The companies employ are various KYC screening tools to prevent terrorism financing, financial fraud, evasion of taxes, and other types of money laundering. Screening in KYC process has gained significance in recent times due to a sudden surge in fraudulent activities. A vital part of any bank or Financial institution is to monitor the client’s profiles and their transactions.

The AML screening process monitoring undertakes to monitor transactions in KYC. It includes:

1. Deposits
2. Transfers between accounts
3. Withdrawals
4. Exchanges of currency
5. Extensions of credit
6. Any monetary instrument or investment security;
7. Any other payment or transfer, etc.

Transaction Monitoring Process Alerts are:

1. Monitoring of cash deposits,
2. Withdrawals, wire transfers that exceed statistical thresholds
3. Complete assessment of money transaction history of the Customer
4. Blacklist screenings
5. Sanctions screening
6. High-risk transaction regulation and exposure.

The 5 Real-time Indicators of Transaction Monitoring in AML

1.Suspicious Activity Monitoring Report

This is the final result of an investigation, and broadly indicates the meeting of the objective of the Transaction monitoring system related to the suspicious activity. There is a need to make sure the case categorization and other details are available to assist the investigation.

2.Quantum of False Positives

A well-performing AML monitoring system makes sure that the number of false positives is greatly reduced which accounts for about 87%. One of the most important aspects here is the screening of sanctions in KYC verification process.

3.Changes in Regulations

Understanding changes will drive investigative activities. The current transaction monitoring systems are oblivious to the current regulatory changes which need to missing suspicious transactions. A robust transaction monitoring will have the changes in the regulations incorporated and ensure that suspicious transactions are tracked in real-time.

4.Different Monitoring scenarios

Lack of proper customer and account segmentation, new products will need more scenarios to be created. Transaction monitoring systems have to be well aware of the above and note differences in their operations.

5.Operational costs

The cost of the Operations teams used to complete investigations and systems tasks needs to be taken into account. The system infrastructure has to support this as well as the transaction monitoring system.


There are various transaction monitoring tools that are used in PEP sanctions screening, name screening in KYC and more. Sanction screening in AML forms an important part to ensure that the organization is not involved in any illegal activities.

At PiChain we understand how important KYC and KYB is for business. To support all our customers and businesses during these challenging times of COVID-19 we have made our fully digital contactless AI/Blockchain driven COVID proof eKYC and eKYB solutions completely free this year. We do real-time eKYC and eKYB along with AML checks for more than 40 countries.

Please email us at [email protected] for queries.

© 2020 PiChain Innovations Pvt. Ltd. All rights reserved.

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