Transaction Monitoring Rules Assessment

Transaction Monitoring Rules assessment

Regulators want to know that transaction monitoring rules have been tailored to a firm’s risk. Out-of-the-box rules are unlikely to be fit for purpose.

All transaction monitoring (TM) systems are based around a set of rules that are designed to identify suspicious activity that you might need to report to the authorities. How do you know if the rules in your system do their job properly & protect your organisation from being used as a tool for illicit money laundering?

SQA Consulting are experts in using, implementing & assurance transaction monitoring systems & we can assess your TM rules to help you understand if they are fit for purpose. Our TM Rules Review covers three main areas:

TM Rule Design

  • How has the firm has selected, designed, tuned & testing their transaction monitoring rules?
  • We assess whether the approach is consistent with good practice.

TM Risk Rule Coverage

  • Are the firm’s financial crime risks covered by their TM rules?
  • We perform a gap analysis between the firm’s risks & their TM rules & produce a heat map showing where risks may not be mitigated.

TM Rule Effectiveness

  • How does the firm assess whether their rules are effective?
  • We provide a view of whether the firm’s approach is likely to produce effective monitoring of AML risks.

To find out how we can help you improve the effectiveness of your TM rules, get in touch via aml-prevention.services@sqa-consulting.com 

Regulators consider obtaining independent assurance of your TM rules as an indicator of a mature approach.

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