Keeping an Eye on Suspicious Activity

Author: Ramona Murton, CAMS-FCI

An increased emphasis by regulators across the globe to enforce high standards, not only in the world of financial institutions (FIs), but also in a wide range of industries, has impacted anti-money laundering (AML) and counter-terrorist financing (CTF) compliance programs. The Financial Action Task Force (FATF), the Egmont Group and the Wolfsberg Group work to continuously improve applicable regulations. This topic is one of top priority as demonstrated by national regulatory audits and the subsequent increase in both the amount and frequency of fines. The media has captured the growing presence of industry noncompliance, as exhibited by the billions of dollars in fines imposed yearly. As these international regulatory expectations continue to mature, FIs are tasked with determining an appropriate investment in transaction monitoring. In essence, this balancing act distills to determining a right-sized approach to human analytics supplemented by automated transaction monitoring. Regardless of how FIs choose to proportion automated monitoring, the human component must remain prominent.

Download PDF