7 Reasons Why Ongoing Monitoring Is Key to AML Compliance Success

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AML


Is a one-time screening of each customer enough to mitigate the chance of money laundering? There isn’t any research that authenticates that a person who is currently not involved in any criminal activities will not be involved in the future. AML Watcher offers an advanced ongoing monitoring system that gives you a feature to spot the risks in real-time.  

Therefore, businesses need to implement an ongoing effort that requires businesses to constantly be on alert for suspicious activities from their customer. 

To make sure your compliance system is robust, financial institutions need to integrate ongoing monitoring in AML that not only monitors the customer identity at the time of onboarding but also verifies each financial transaction in real-time and flags any suspicious transaction to ensure their firm is not being exploited. 

Today we will discuss the top 7 reasons why ongoing monitoring is essential for business and why businesses can’t afford to ignore implementing it in their existing AML compliance system, will also answer the most asked question what is ongoing monitoring system? 

Is an Ongoing Monitoring System Essential for Financial Institutions?

Yes!  An ongoing monitoring system isn’t a choice for financial institutions but an essential tool in the fight against money laundering and other financial crimes. 

In an industry like financial institutions including banks where compliance with Anti-Money Laundering (AML) regulations is essential,  an advanced and comprehensive monitoring system is very beneficial to not only stay compliant but also mitigate financial crimes.  

Top 7 Reasons to Opt for an Ongoing Monitoring System 

1. Real-Time Monitoring of Suspicious Transactions 

    With an ongoing monitoring process, businesses do not need to check the legitimacy of the transaction after it is done. You watch them unfold in real time. 

    It means that if any customer makes a transaction that goes against the rules and regulations set by international regulatory bodies will automatically be flagged even before the transaction happens.  Ongoing AML monitoring system works as the first line of defense for the financial organization as it catches suspicious activities before they turn into a major problem. 

        2. Stay Updated with Customer Risk

    This is not sure that The customer will not remain the low-risk client if, at the time of onboarding, he does not pose any risk. Because people and businesses change with the time. If a person is lower risk now he can turn into a criminal master in the future. Therefore, businesses need to ensure that clients are being monitored on every transaction to make sure there isn’t anything fishy in the transactions. 

    Here comes the ongoing monitoring system for businesses that ensures that businesses re you’re continuously updating information about customers, so you can adjust their ongoing risk monitoring levels and take action when necessary.

      3. Instant Alerts When Something’s Off

    An ongoing monitoring system also helps you instantly know if any suspicious transaction is being made. What this system does is it flags that transaction and generates an alert for a compliance officer to take instant action against such transactions. 

    So, when doesn’t add up, you will find it right away.  With an ongoing monitoring system, you get the chance to investigate and report potential money laundering instead of letting things slide. 

    4. Integrate able with Sanction Screening and Watchlist screening 

    Screening against sanctioned and watchlist screening is essential for businesses to ensure that criminals are not allowed to use your platform for money laundering activities.

    Therefore, if your ongoing monitoring system is updated with the sanctioned screening your system will always screen the customer and their transaction against the latest and updated sanctioned which will keep your organization updated about the latest list of criminals. 

    5. Protects Organization From Negative News

    Would anyone like to invest in an organization that is not even able to stop people from using their institute for money laundering and other financial crimes?  Because any bad news or negative news about your organization can hurt your business reputation and can keep potential clients away from your business. 

    Ongoing monitoring helps you keep an eye on the news and help you flag customers who pops up in reports about fraud, corruption, or other crimes. That way, you can deal with potential reputational risks before they spiral out of control.

    6. Ensures Compliance Across Borders

    So if you are running a business that is operating in different countries, your complaint efforts could be more robust and efficient, and staying compliant with AML regulations becomes even more essential. In such circumstances, an ongoing monitoring system simplifies this by continuously screening transactions following the AML compliance requirements of each jurisdiction. 

    To Sum It All Together 

    In the fast-paced world of financial crime, ongoing monitoring is essential to keeping your business safe. But the question is what ongoing monitoring system businesses must implement. Well, that is a tough decision. AML Watcher offers an advanced ongoing monitoring system that gives you a feature to spot the risks in real-time.

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