SUNDAY, 23 FEB 2020

 

CONNECT

Facebook Linked In Twitter
Compliance_29/01-24/09_728x90px
Invest Cyprus 30/04-30/03/2019
IMH LTD

Natasa Pilides Underlines Need To Maintain The Competitiveness Of European Shipping

Charles Mitchel Contacts UN SG To Discuss Bloc's Involvement With Cyprus Issue

IMH LTD
GAP_Group_2019_468x60px

PROFESSIONAL SERVICES

brought to you by PWC

Transaction Monitoring: The Key Challenges

Transaction Monitoring: The Key Challenges

Money laundering is disturbingly increasing because criminals effectively go about their business without being considerably disturbed. Regulators and authorities are responsible to prevent these actions across all sectors and their members (Financial Institutions, Law Firms and Auditing Offices).

In an attempt to redefine and evaluate procedures that will protect and prevent from money laundering, it is inevitable to apply and use Transaction Monitoring. Implementing Transaction Monitoring processes should not be limited to the initial stages of establishing a business relationship with the client but throughout the lifespan relationship with the client. Similarly, transaction monitoring should involve new and existing customers, and the Due Diligence process for both categories of customers.

A Transaction Monitoring solution should provide an organization with the ability to track large volume of transactions, as well as recognizing suspicious patterns that will assist with pinpointing any illegal business traffic. Acquiring such a solution is challenging, and the right expertise and experience is required from the vendor to make sure the business is safeguarded by monitoring risk, tick-off all the regulations and keep any partner happy.

Below we mention the key challenges that one organization will need to consider prior to moving forward with acquisition and adaptation to a Transaction Monitoring solution:

1. Case Management 
A Transaction monitoring solution to be comprehensive it ought to be able to manage cases individually by generating alerts. The case management feature should also have the possibility to investigate each case separately, assign criticality / priority and mitigation actions, track the status, but also to able to delegate it.

2. Rule Management
From our experience having too many rules does not necessarily mean better. Instead, we propose having a rule that is flexible and that can relate to real-life scenarios, but also manage and tweak around as each company is different. Within this Transaction Monitoring Rule framework, a system should support creation of predefined rules regarding cases of valid AML flags/alerts, allowing for both real-time monitoring and the fine-tuning needed to cover unforeseen requirements.

3. False Positives
Preset rules are great, but can never be accurate. This will result to a generation of high volume of positives, and this increases the workload of tiresome work for compliance officers. Applying predictive analytic methods - such as Machine Learning and/or Artificial Intelligence - will eliminate the occurrence of false positives, and consequently increase the results accuracy.

4. Reporting
For any organization it is vital to obtain and extract any sort of helpful information. Establish beforehand just how your transactions will be monitored, analyzed, managed and completed. This will enable you to determine what data is important to your organization. All this intelligence the software solution should analyze and present at any way that fits best for your organization. I.e. Excel file export, or a graphical visualization within the solution itself. This will benefit you from acquiring additional services of a 3rd party vendor.  

5. Risk
Organizations such as the Financial Action Task Force (FATF), the EU’s 4th Money Laundering Directive and more, suggest that a comprehensive AML program should operate using a risk-based approach. Firms should create and consistently updating a risk profile for each of their client, including transactions and source of funds. The personal and business risks that come along with this are too high, thus a solution should continuously identify all forms of risk which may be embedded in the organisation’s structures, processes, systems, and data, and which may be causing business hazards.

6. Cost & Future Proofing
Can the software solution keep up the pace and vision of my firm? That’s a question of the up most importance. Remember that regulations change. New guidelines are put in place - a great example is the EU’s AML Directives. Or, new products are offered by a company. A software solution should be able to accommodate any sort of change that might come along the way to ensure that business requirements changes can be implemented at low cost. Then, are there any support or maintenance costs (to name a few) that need to be taken into consideration? Assign KPIs that can guarantee performance monitoring.

 

For further information contact i-Spiral

www.i-spiral.com
info@i-spiral.com
24531975

MORE ON PROFESSIONAL SERVICES

Marcel Corstjens Presents: “Retail: The Power And The Profits”

The CIM Summit 2020, organized by the Cyprus Institute of Marketing - The Cyprus Business ...

The Implications of AML 6 Directive (6AMLD)-Prospectacy Limited Explains

Money laundering is a global issue that has the potential to undermine the integrity of ...

EY Organized An Info Day On Tourism Titled “Future Cities, Future Destinations: A Transformational Journey”

EY Cyprus has organized an information day on Tourism, titled “Future Cities, ...

FROM AROUND GOLDNEWS

   

The Cyprus Shipping Chamber Actively Participated At The European Shipping Week

The Cyprus Shipping Chamber participated at the 3rd European Shipping Week held between 17-21 February 2020, in Brussels, through its President, Philippos ...
   

Natasa Pilides Underlines Need To Maintain The Competitiveness Of European Shipping

Cyprus' Shipping Deputy Minister Natasa Pilides underlined "the need to maintain the competitiveness of European Shipping," during the debate on ...
   

Communications And Transport Had The Largest Positive Change Over Consumer Prices In January 2020

In January 2020, according to CyStat, the Harmonized Index of Consumer Prices (HCIP) increased by 0,7% compared to the index of January 2019 while, when ...
   

Charles Mitchel Contacts UN Secretary-General To Discuss Bloc's Involvement With Cyprus Issue

The Cyprus government welcomes the active involvement of the EU in efforts to solve the Cyprus issue, following the initiative of the President of the European ...
   

Google’s Recipe For Success At The 3rd Data Management Forum

Collecting the right data requires first understanding what kind of actions we need to achieve from it. Learn some funda­mental best practices on data ...
   

EU Deadlocked In Budget Summit As Rifts Laid Bare

EU leaders were deadlocked over the bloc’s next multiannual budget after lengthy summit talks on Thursday night laid bare rifts over how to fill the ...
   

Substantial Increase In Investment Fund Assets For December 2019

The Central Bank of Cyprus has released yesterday the Investment Funds statistics for the reference month of December 2019. Τhe number of investment funds ...
   

Cyprus Enterprises Find It Less Difficult To Recruit ICT Specialists Relatively To The E

Hiring expertise in information and communication technologies (ICT) is a challenge for businesses in the European Union (EU). During 2018, according to ...
 

YOUR COMMENTS

HEADLINES

MOST POPULAR

Data_Forum_24/01-04/03_300x250px
Gold_Issue_300x250px

IMH LTD