What is transaction monitoring?
Transaction monitoring is the ongoing process of analysing customer transactions to detect patterns that may indicate money laundering, terrorist financing, or other financial crime. It forms a critical part of ongoing monitoring obligations under the FATF Recommendations.
Transaction monitoring for non-financial institutions
While transaction monitoring is often associated with banks, non-financial institutions also have obligations to monitor business relationships for suspicious activity. Accountants should monitor for unusual financial patterns in client accounts; estate agents should be alert to transactions inconsistent with a buyer's profile.
FirmScreen supports ongoing monitoring through automated rescreening when sanctions lists are updated.
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