Learn to design and optimize a transaction monitoring system (TMS) to detect suspicious transactions. Set risk-based thresholds, use data analytics, manage alerts, and file Suspicious Activity Reports (SARs).

Learning Objectives:

• Understand the key principles of an effective transaction monitoring system (TMS) in the context of AML/CFT compliance.
• Learn how to design, implement, and optimize a transaction monitoring system tailored to organizational needs.
• Develop skills to detect and flag suspicious transactions indicative of money laundering, terrorist financing, and other financial crimes.
• Explore best practices for setting transaction monitoring thresholds and rules based on risk assessment.
• Understand how to leverage data analytics and automated tools to enhance the efficiency of monitoring systems.
• Learn how to generate and interpret transaction monitoring alerts and manage false positives.
• Master the process of filing Suspicious Activity Reports (SARs) and complying with regulatory reporting requirements.
• Learn how to continuously update and improve the transaction monitoring system to meet evolving regulatory expectations and business needs.

Course Outline:

Introduction to Transaction Monitoring Systems:

• Overview of TMS and its role in detecting and preventing financial crimes.
• Regulatory expectations for transaction monitoring (FATF, local AML regulations).

Designing an Effective Transaction Monitoring System:

• Key components of a robust TMS, including data integration, rule-setting, and risk assessment.
• Steps to align TMS with an organization’s risk-based approach.

Transaction Monitoring Thresholds and Rules:

• How to set risk-based thresholds and rules to detect unusual or suspicious transactions.
• Using dynamic rules to capture evolving money laundering and terrorist financing typologies.

Data Analytics and Automation:

• Using data analytics and artificial intelligence (AI) to enhance transaction monitoring.
• Automating the detection of red flags and reducing the occurrence of false positives.

Managing Alerts and Investigating Suspicious Transactions:

• Generating, reviewing, and prioritizing alerts.
• Investigating flagged transactions and preparing internal reports.

Filing Suspicious Activity Reports (SARs):

• Steps to file SARs with regulators and Financial Intelligence Units (FIUs).
• Documenting the investigation process and decision-making.

Continuous Improvement of TMS:

• How to update the system to address new risks and regulatory changes.
• Regular audits and reviews of TMS effectiveness.

Case Studies and Best Practices:

• Real-world examples of successful and failed TMS implementations.
• Lessons learned and best practices for optimizing a transaction monitoring system.

Duration:

2-3 Days (with practical exercises and case studies).

Level: Intermediate to Advanced

• Suitable for compliance officers, AML professionals, risk managers, and IT professionals involved in monitoring system implementation.

Prerequisite:

Basic understanding of AML/CFT principles and transaction monitoring processes.

Category:

• AML/CFT Compliance
• Risk Management/Financial Crime Detection