What Is Transaction Monitoring & Why Do You Need It?
The fundamentals of a transaction monitoring system is to identify and protect a financial service center from transactions that are not compliant with the Bank Secrecy Act (BSA), anti money laundering (AML) rules and regulations and the Office of Foreign Assets Control (OFAC).
A transaction monitoring system is necessary because it is almost impossible to safeguard your business without one.
Transaction Monitoring Benefits:
MANUAL VS AUTOMATED
Depending on the size of your institution, you might be sorting through transactions manually, but if you have multiple location, brands and products, you will need an automated system to provide a deeper level of protection.
Compliance IQ is an automated transaction monitoring tool that was developed specifically for cash based businesses. The highly comprehensive tool allows you to set the business rules and is fully compliant with current and trending rules and regulations.
Compliance IQ Features:
Compliance IQ is available through the Compliance Management Portal which already hosts services such as automated employee training, document storage, calendar reminders, monitoring logs and now Compliance IQ automated transaction monitoring.
THE FUTURE OF TRANSACTION MONITORING
Recently the New York Department of Financial Services (NY DFS) set a precedent with Part 504, by requiring all financial service centers to certify they have adopted a transaction monitoring system by April 2018. More states are forecasted to follow.
It is imperative to protect your business by identifying high risk activity and reporting criminals and terrorists to the proper agencies. Automated transaction monitoring makes that cumbersome task simple.
For help with your transaction monitoring plan, contact us.