If you’re talking AML transaction monitoring with your current or potential service provider, use this list of questions to guide the conversation. You should understand what does and does not trigger alerts, how anomalies are detected and reported, and the circumstances under which additional due diligence is required.
Here are the questions:
Who Is Responsible For Interpreting The Alerts?
False positives can waste your time and damage your reputation. Make sure you’re comfortable with your provider’s approach to managing false positives before signing on the dotted line.
They must be willing to share their policies on false positives with you. The best Pep screening solutions and software will have clear policy guidelines to reduce false positives.
What Is the Sizing of the Solution?
You don’t need a complete solution if you’ve got fewer than 100 employees in your office. Beware of providers trying to sell you on the idea that every transaction requires manual review – this is not efficient at all.
If they’re saying that every transaction needs to be reviewed, ask them how they prioritize which ones should be reviewed first?
How Are The Transactions Being Screened?
You need a solution that screens all types of transactions – not just credit card or wire transfers – and does so in real-time. It’s no good finding out after the fact that you made a bank transfer to someone on the OFAC list.
The best AML transaction monitoring software will screen all types of transactions in real-time. For example, you should add rules for your cash transactions or other types of payments your employees make.
What Is The Current Size And Growth Rate Of The Platform?
You need a scalable solution that can grow with your company’s needs and account for volume loss during seasonal lulls. The amount and complexity of your transactions should increase as your company grows (more employees, more offices, etc.).
What Types Of Alerts Does The Solution Send?
You need to know what kind of alerts you’re going to receive – via email, text message, or phone call – what they mean and how they’re prioritized. Some alerts may require immediate attention, while others can wait.
The best AML transaction monitoring solutions can be configured in many different ways to suit your company’s needs and preferences.
How Does The Solution Prioritize Alerts?
Make sure you know when additional due diligence is required and where the line falls between a “suspicious” and a “non-suspicious” transaction. You don’t want to be struggling with false positives.
What Happens When You Get An Alert?
When you get an alert, do you need to take action, such as calling the client or (for wire transfers) your bank? Is there a time frame in which you need to call the bank? Remember, not all alerts are created equal, so make sure your provider prioritizes them correctly.
What Additional Features Does It Offer?
You need to make sure that your service provider offers all the features you want in a package that is affordable and scalable. As your company grows in size and complexity, you may need additional features to comply with money laundering regulations.
A good AML transaction monitoring software will include all of these features:
-KYC databases: Know Your Customer (KYC) and Customer Due Diligence (CDD), including sanctions/watchlists
-US and EU sanctions lists
-Trace of funds up to 3 years which can be used for AML due diligence, terrorist financing, tax evasion, and fraud investigations.
Does Your Vendor Have An Onboarding Program?
A vendor onboarding AML software helps you implement the AML transaction monitoring solution, including training on how to use it?
There are many benefits to utilizing a vendor onboarding service. They will help you understand where potential problems may arise, show you how to report effectively, and offer advice on best practices.
Can Your Vendor Provide KYC And Sanctions/ Watchlists?
The best AML transaction monitoring solution will provide you with the data and tools to keep up with constantly changing lists that require additional KYC information.
What is the Cost of the Service?
Transaction monitoring solutions vary in price based on the number of users, the number of transactions screened, and other factors. However, you should expect to pay more than around $50 per month per user when looking at the best AML transaction monitoring software solutions.