Transaction Monitoring

WatchEye is our highly advanced, state of the art monitoring solution that allows customers to create customised “alert programs” from transaction monitoring, to KYC data monitoring. In fact, WatchEye was designed to screen, monitor and alert almost anything data related.

An “appropriate” risk-based Transaction Monitoring Program involves assessing the unique risk profile of your entity and implementing measures that are proportional to the level of risk identified. According to AUSTRAC, this includes regular reviews and updates to ensure the program remains effective in identifying suspicious transactions. For more information, visit AUSTRAC’s guide on Transaction Monitoring.

Differentiating between normal deviations and suspicious activities involves setting clear parameters for what constitutes ‘normal’ behaviour based on historical data and understanding the context of the customer’s transactions.

Entities should follow a structured process for submitting suspicious matter reports (SMRs) to AUSTRAC. This involves gathering all relevant transaction data, conducting a thorough review to confirm suspicions, and completing the SMR form accurately with all required information. For detailed guidance, refer to AUSTRAC’s Suspicious Matter Reports (SMRs) guide.

Non-compliance with AML/CTF requirements can result in significant legal penalties, including fines and reputational damage. Entities that provide designated services must ensure they adhere to AUSTRAC’s guidelines to avoid these consequences.

An example of a specific predefined rule used in real-time transaction monitoring is the “High-Value Transfer Rule.” This rule triggers an alert for any single transaction or series of transactions within a short period that exceeds a specified high-value threshold. This helps to detect potential money laundering activities by flagging unusually large transfers that are not consistent with the customer’s typical transaction behaviour.

False positives refer to alerts or flagged transactions that are incorrectly identified as suspicious or indicative of potential money laundering or terrorism financing activities. These are transactions that trigger the monitoring system’s predefined rules or thresholds, generating an alert, but upon further investigation, are found to be legitimate and not indicative of any illegal activity. To mitigate false positive alerts, we regularly review and adjust the thresholds and rules that generate these alerts. Additionally, we implement machine learning algorithms to help the system better distinguish between false positives and genuine suspicious activities by learning from past data.

The cost is minimal, compared to the fines and legal ramifications imposed by regulators for non-compliance. Contact us for a customised, tailored quote.

We offer monitoring beyond just financial transactions. Our system also tracks various critical data points, including; alerts for any changes in residential addresses, notifications for disconnections or changes in phone numbers and email addresses, as well as vital alerts for key events such as liquidations, bankruptcies, and criminal investigations. These capabilities are pivotal in detecting and preventing fraud. For a detailed list of all our monitoring solutions, please contact us.