The digital world has witnessed a great number of criminal activities and banks are no exception. As they deal with a large number of transactions each day, transaction monitoring software is their absolute necessity.
Transaction phone tracker app protects kids and businesses from criminal and fraudulent activities. Whenever it detects any dubious transaction, it produces an alarm. The monitoring is stopped then and there. The process is quickly reviewed by the risk department and in case any dubious transaction detects, is reported to the AML/KYC regulations. They carry out further monitoring to analyze the risk associated with a particular client.
Why Sectors Require Transaction Monitoring Software
With the increasing number of criminal activities even while performing transactions necessities to deploy transaction monitoring solutions. It is a great bet for the banks to monitor their clients while analyzing their past and present information to give a complete picture of the user’s activities. Deploying know your transaction solutions help sectors to comply with the CFT and AML regulations. It checks for any dubious transactions and analyzes suspicious transactions in this era of the digital age.
AML Compliance and Transaction Monitoring
All the local and global AML regulators aim to avoid financial crimes including money laundering as well as terrorism funding. This is the reason they set up strict regulations for institutions that are vulnerable to financial crime risk. As the dynamics of financial crimes are changing continuously, this led the global regulations to revise their laws that can better protect businesses from such heinous crimes. There are many AML regulations, global and local, that sectors should adhere to whether it is a bank or any other financial sector. With robust know your custom transaction monitoring software, all sectors could check the transactions and prevent any possible money laundering cases in the firms.
Suspicious Activity Reports (short for SAR) come under AML rules and regulations. The responsibility to report such transactions has become mandatory in this age of digitization. For instance, the US Patriot Act enhanced its SAR standards to fight local as well as global terrorism. In case any dubious transaction is performed, the financial sector is mandated to prepare a SAR. The report must be sent to the FinCEN which is associated with a treasury of the United States.
Reasons Why Transaction Monitoring Software is Essential for Businesses
As the world has technologically advanced, so do the fraudsters. They are just coming up with new and smarter ways to bypass the monitoring systems and carry out their nefarious activities. Banks and other financial firms are witnessing a rise in crimes including money laundering. This is the reason why transaction screening has become a need of the day. Apart from this, there are various other reasons why sectors need to deploy robust transaction monitoring solutions.
If sectors choose to monitor transactions manually, it would be an outdated approach as the manual transaction screening is not only time-consuming but also susceptible to human errors and compromise the user experience. If the competitors would rely on the software to monitor their transactions, they would surely leave the company, that relies on manual verification solutions, behind. This is where deploying KYT verification services becomes important as the screening carried out manually is never consistent when compared to the one carried out through robust software. Screening when done manually could be interrupt and its efficiency decrease significantly, but when done with automated transaction monitoring software, multiple data sources could be scanne with greater accuracy and greater efficiency.
Regulatory bodies demand proof that the software has recognized any dubious transactions which means presenting accurate suspicious transaction reports. Here again, the transaction monitoring software helps. It provides the regulators and other stakeholders with proof of solutions working. It is worthy to note that the transaction monitoring software holds a great part in the AML system. Companies that rely on manual transaction monitoring are instruct to deploy an automate transaction monitoring system that could mitigate the risk of criminal activities while cutting down the company costs and increasing its efficiency.
Final Thoughts
In the digital age where money laundering has become prevalent, complying with AML regulations is a must for all financial sectors. An important part to meet AML and KYT compliance is to use transaction monitoring software that could effectively monitor any dubious transactions. The best KYT solution provider is the one that not only helps prevent money laundering but also prevents the financial sector from paying hefty fines.
