Transaction monitoring is a vital weapon in the fight against financial crime. This course explains Transaction Monitoring (TM) and transaction monitoring tools. It analyses the legal basis and the provisions of the Law relevant to TM. It defines TM which is a critical part of AML and needs to be robust to respond effectively to the illegal laundering of funds.
It explains that there are two approaches to TM, (a) in real time and (b) after the transaction takes place.
This course also explains why TM is important and that good TM proactively safeguards organizations from being targeted by criminals and helps maintain compliance required by regulatory bodies.
In addition, this course explains the key reasons for obliged entities to have an effective Transaction Monitoring framework in place and defines the factors that Companies shall consider when examining transactions. Generally speaking, in order to monitor financial transactions, a company shall create a rules-based system that’s based on its needs.
The difference between transaction screening and transaction monitoring is explained. They might sound like the same thing but there are some notable differences.
Transaction monitoring can be used to detect signs of illegal activities, such as, Money Laundering, Terrorist Financing, Fraud, Drug trafficking, Bribery, Corruption and identity theft.
Any company that is considered a mover of money is required by law to take the necessary steps to protect customers from security breaches, fraud, and other forms of financial crime.
Whether businesses choose to build their own transaction monitoring system, or instead consider a KYT solution, they should take specific steps before implementing either option. These steps are described in this course.
To maximize the benefits and minimize the cost of transaction monitoring tools, companies can look for specific features in the KYT solutions like suitability for your business, easy to navigate, ease of integration, ability to create complex statistical models, ability to test rules before deploying and reporting features.
The main elements of an effective TM tool are defined and is explained that an effective TM system may employ an automated approach, however it is still relied on a certain level of manual, human intervention.
Setting the right business rules and thresholds for anti-money laundering (AML) transaction monitoring is a delicate balance. The rules must be detailed enough to capture all potentially suspicious activity without being so broad that they generate too many ‘false positives’.
The next stage in the evolution of rule-based system engineering is to move to an AI and machine-powered approach.
The course is split into the following sections:
Section 1: Relevant legislation
- Relevant legislation
Section 2: Understanding Transaction Monitoring
- What is transaction monitoring?
- Why is transaction monitoring important for AML?
- Factors to be considered when examining transactions
- AML transaction monitoring procedures and rules
- Anti-Fraud vs. AML Transaction Monitoring
- Transaction Screening vs. Transaction Monitoring
- What does transaction monitoring detect?
- AML transaction monitoring thresholds
- Who needs transaction monitoring?
- AML transaction monitoring and KYC
Section 3: AML transaction monitoring process
- Risk Assessment – Understand client risk factors
- Establish internal policies
- Determine elements of suspicious behavior
- Define a suitable transaction monitoring solution
- Create Transaction Monitoring Rules for each risk
- Set up and Alerts
- Notify compliance teams
- Optimize Rules Over Time
- Create Cases and Perform Investigations
- File Suspicious Activity Reports (SARs)
- Ongoing Maintenance of the AML Monitoring System
Section 4: Efficient transaction monitoring solution – AML transaction monitoring tools and software
- Suitability for your business
- Easy to navigate
- Ease of integration
- Ability to create complex statistical models
- Ability to test rules before deploying
- Reporting features
- The main elements of a transaction monitoring tool
- Manual, Human intervention
- AML transaction monitoring best practices
Section 5: How to set efficient AML transaction monitoring rules
- Setting efficient AML transaction monitoring rules
- Preparation and understanding are key
- Map out your known risk areas
- Creating better rules
- Avoiding common pitfalls
- AML compliance rule examples
- Challenges in the existing Transaction Monitoring landscape
- Beyond business rules: applying machine learning and artificial intelligence
- AML transaction monitoring red flags and what to avoid
Section 6: Consequences of Non-Compliance
- Business disruption
- Reputational damage
This course may take up to 5 hours to be completed. However, actual study time differs as each learner uses their own training pace.
The course is addressed to:
This course is addressed to all individuals who practice Anti-Money Laundering or interested to learn or enhance their knowledge in Money Laundering such as:
- Compliance/AML Managers and staff in Banks, Investment Firms, Investment Funds, ASPs, Trust Service Corporate Providers, Accountants, Auditors and Lawyers.
- Employees of Banks, Investment Firms, Investment Funds, ASPs, Trust Service Corporate Providers, Accountants, Auditors and Law Firms who are involved or interested to learn or enhance their knowledge in Money Laundering.
- Executive Directors, Non-executive directors, Senior Managers, Compliance Officers, Risk Managers, Product Managers, Portfolio Managers, Investment Advisors, Dealers, Marketing Managers and in general employees of investment firms, funds, ASPs. Law firms, Accountants, Auditors.
- Internal Auditors
It is also suitable to professionals pursuing CPD in Anti-Money Laundering for the renewal of CySEC Certificate (CySEC Basic or CySEC Advance Certificate or CySEC AML Certificate) or other relevant certificates in other jurisdictions.
The course is offered fully online using a self-paced approach. The learning units consist of power point presentations. Learners may start, stop and resume their training at any time.
At the end of the course, participants take a Quiz to complete the course and earn a Certificate of Completion once the Quiz has been passed successfully.
Accreditation and CPD Recognition
The course can be accredited by regulators and other bodies for 5 CPD Units that require CPD training in Anti-Money Laundering. The course may be also approved for up to 5 CPD Units by institutions that approve general financial and AML training, such as the CySEC, ICPAC, CBA, CISI, ICA and ACAMS.
Eligibility criteria and CPD Units are verified directly by your association or other bodies in which you hold membership.
Registration and Access
To register to this course, click on the Take this course button to pay online and receive your access instantly. If you are purchasing this course on behalf of others, please be advised that you will need to create or use their personal profile before finalizing your payment.
Access to the course is valid for 60 days.
If you wish to receive an invoice instead of paying online, please Contact us by email. Talk to us for our special Corporate Group rates.
George Papanicolaou has more than 20-years experience in the Financial industry. He worked for several years in managerial positions as area Manager, Head of Brokerage, Compliance Officer, Anti Money Laundering Officer, General Manager and Executive Director in Cypriot Investment Firms as well as Managing Director of GP GLOBAL LTD offering consulting services and training courses to Investment Firms, focuses in Internal Audit, compliance & AML issues. He offered numerous courses/seminars both in Cyprus and abroad in Investment Firms Law as well as in Compliance & Anti Money Laundering. George Papanicolaou is also a Chairman of a Nomination Committee in a company listed in the Oslo Stock Exchange.
George Papanicolaou holds a BSc in Electronic Engineering from the University of Texas at Austin (USA), an MBA with specialization in Finance from Leicester University (UK) and a Postgraduate Certificate in the Mechanics of Risk Management from Middlesex University (UK).
He also holds an ICA International Diploma in Anti Money Laundering from the International Compliance Association and the University of Manchester, as well as an Advance and Money Laundering certificate from the Cyprus Securities and Exchange Commission for the provision of investment services/activities.
He is a Fellow of the International Compliance Association (FICA), Mentor of ICA new students, member of the Cyprus Institute of Internal Auditors and Network chair for Cyprus of the International Compliance association.
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