An effective transaction monitoring program is vital to detect suspicious activity, prevent financial crime, and ensure compliance with regulations. It safeguards your business from legal risks and reputational damage while reinforcing trust with customers and regulators. More than a requirement, it’s a smart investment in security and long-term success.
An optimal program should consider these areas as key:
Policies and Procedures – Clear, well-defined policies and procedures provide the foundation for consistent monitoring practices and ensure compliance with regulatory requirements.
Training – Regular training equips staff with the knowledge and skills to identify suspicious activity and apply Transaction Monitoring processes effectively.
MI’s and Reporting – Accurate management information and timely reporting enable informed decision-making and demonstrate oversight to regulators.
1st and 2nd Line Investigations – Strong first and second line investigations ensure alerts are reviewed thoroughly, reducing risk and maintaining control integrity.
Systems – Robust and well-calibrated systems enhance detection capabilities, reduce false positives, and support efficient monitoring.
Governance - Effective governance ensures accountability, oversight, and continuous improvement of the Transaction Monitoring framework.
An effective transaction monitoring program is more than a regulatory requirement, it is a cornerstone of strong compliance and risk management. By combining clear policies, skilled teams, robust systems, and strong governance, businesses can detect threats early, maintain regulatory confidence, and protect their reputation. Investing in these areas ensures a resilient framework that supports both compliance and long-term success.
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How can KPMG help?
We have developed a specialised Transaction Monitoring audit offering to assist you in understanding if the different areas of your program are effective and compliant.
