Avoiding Transaction Monitoring Pitfalls: 5 Key Strategies

Lack of Centralized Customer Information: Establish a Know Your Customer (KYC) registry for accurate and accessible customer data, reducing investigation time and ensuring reliability.

Repetition of Full KYC Checks: Implement a targeted operating model focusing on the specific risks highlighted by alerts, promoting efficiency and avoiding unnecessary work.

Inundation of Unnecessary Alerts: Implement an effective 'good guys' list process to prevent repeated alerts on legitimate entities, optimizing resource allocation and reducing false positives.

Unintelligent Alert Scenarios: Employ statistical and AI-configured monitoring scenarios tailored to customer behavior and organizational risks, enhancing detection accuracy and reducing false positives.

Box-Ticking Compliance Culture: Foster a culture of proactive compliance through engaging discussions, knowledge sharing, and performance metrics aligned with risk management objectives, ensuring effective financial crime prevention.