Detect and Prevent Financial Crime in Real-Time

Transaction Monitoring Solution

The transaction monitoring solution can detect and prevent financial crimes. This is done through the analysis of transactions and is needed for regulatory compliance. With transaction monitoring solutions, suspicious activities are detected in real-time. The solution works to detect any smurfing or unusual transactions that could indicate fraud. In addition to fraud prevention, through the Overwatch platform, transactions are screened in real time against government watchlists and other applicable sanction databases. Based on the outcome of these live compliance checks, transactions associated with restricted or high-risk individuals can be automatically blocked or escalated according to predefined risk rules.

What Transaction Monitoring Solves

When using this solution, organizations can review all financial transactions and instantly detect and report any signs of suspicious activity. Complex money laundering schemes can be detected and prevented. Once a customer has been onboarded, the anti-money laundering transaction monitoring continues. Any transactions that involve restricted customers or transactions from blocked regions will be identified. The monitoring process detects changes in customer behavior as well as new fraud tactics. 

Our solution solves the problem of meeting legal requirements. To ensure AML compliance, risks are identified and Suspicious Activity Reports can be sent to the appropriate authorities. With transaction monitoring AML services, there is an ongoing analysis of any customer transaction, including deposits, withdrawals, and transfers. Ongoing monitoring is one of the regulatory requirements that businesses must comply with.

How the Transaction Monitoring Solution Works

Financial transaction monitoring solutions work continuously to detect any suspicious activity. The goal is to detect money laundering and fraudulent activities. By collecting data, screening it against rules, scoring risk, and generating alerts, our monitoring solution is a simple yet effective process for detecting high-risk individuals and true threats.

1. Collection and Ingestion of Transactions – The first step in the process is collecting and ingesting real-time data. This includes the amount of the transaction and geolocations. Data is collected from payment processors, internal databases, and banking systems. The data ingested is then fed into the automated system, which applies rules to screen for any high-risk transfers or other anomalies.

2. Rule-Based & Risk-Based Analysis – The solution will trigger alerts when any pre-defined scenarios occur. Transaction monitoring rules can include multiple transfers to any high-risk country or a transaction that exceeds a set amount. Rule-based analysis is simple and efficient and is best used for spotting clear rule violations. With risk-based analysis, high-risk individuals are monitored closely while lower-risk transactions are not often flagged. 

3. Alert Generation – Through real-time transaction monitoring, any transaction that varies from the norm will generate an alert. Alerts are commonly triggered by a large number of transactions in a short period, transactions that are conducted in sanctioned jurisdictions, or any payments that are inconsistent with the normal pattern of the customer. 

4. Review & Escalation – When an alert is created, it is reviewed to determine whether it is a false positive. Suspicious alerts will require deeper investigation, where KYC data is examined. If needed, the organization can contact the customer for additional information. After the investigation is complete, the case will be escalated if suspicious activity is confirmed. This will trigger a Suspicious Activity Report.

5. Ongoing Monitoring & Learning – The activity of customers is monitored on an ongoing basis. Learning systems are used to adapt to any new threats and to reduce false positives. Continuous transaction monitoring will update the risk profile of each customer based on ongoing activity. 

Key Capabilities

As a fraud prevention tool, transaction monitoring continuously examines data in real-time to detect threats or fraud. Risks can be identified faster, and false positives are reduced. Here are some of the key capabilities of the monitoring solution offered by Qoobiss:

• Payment and transaction monitoring – The monitoring of payments and transactions is done in real-time to quickly detect money laundering, terrorist financing, or fraud. Payment transaction monitoring analyzes customer data, including the speed and number of transactions, normal behavior, and geography.

• Risk-based transaction monitoring – Customers are grouped by risk level, and the risk-based transaction monitoring will set tighter thresholds for any high-risk customers. 

• Fraud and suspicious activity detection – Behavioral analysis and pattern recognition are used with fraud transaction monitoring. This detects identity theft and is commonly used in banking sectors. Real-time monitoring keeps an eye on data streams and will instantly flag any suspicious activity.

• Alerts and monitoring workflows – As part of the suspicious transaction monitoring process, alerts are triggered when there are anomalies. Rules and data analysis are used to generate alerts. These are then investigated, and if they are confirmed, a Suspicious Activity Report is filed with authorities. 

Transaction Monitoring in AML & KYT

Analyzing transactions in real-time is part of AML transaction monitoring. Systems check customer data against patterns and redefined rules to prevent fraud. AML transaction monitoring solutions log all user activity, apply risk rules, and deliver alerts when any suspicious activity is detected. Organizations are mandated to monitor financial transactions to adhere to AML regulations.

Know Your Transaction is an AML tracking process where customer financial activity is monitored. With KYT, risk assessments are performed continuously to prevent fraud and financial crimes. Transaction monitoring in KYT is essential in the crypto industry as it allows companies to trace activity, monitor behavior, and check against sanctions lists. 

When customers open a new account, an initial risk profile is created. Transaction monitoring is a counterpart to the KYC process during onboarding. KYC sets a baseline for normal account /customer behavior and verifies user identity. KYC transaction monitoring is an ongoing process, using information from the onboarding process to validate user activity. 

How it Fits into the Qoobiss Ecosystem

The KYC platform, ONTRACE, powers the transaction monitoring solution. With ONTRACE, organizations can quickly identify customers and complete the onboarding process. Our AML transaction monitoring is part of the AML screening platform, OMNICHECK. This tracks financial activity and allows for faster detection of suspicious patterns. Risk intelligence and governance are handled by the OVERWATCH platform. This is the compliance option that can be used in combination with other products. 

When used with OVERWATCH, our transaction monitoring solution is used for customer profiling, enhancing security, and ensuring regulatory compliance. Qoobiss provides automated transaction monitoring with all platforms, offering integrated AML monitoring. Compared to Subsum, which offers an all-in-one solution, Qoobiss is highly customizable to meet the monitoring needs of organizations in any industry.

Industries & Use Cases

Both financial organizations can benefit from transaction monitoring. It is used to detect fraud and money laundering. The transaction monitoring solution from Qoobiss analyzes the patterns of transactions in real-time to manage risk. Monitoring also satisfies AML regulations and uses the latest AI and machine learning technology to reduce false positives.

• Banking & Lending – Banks often use transaction monitoring to watch for compliance risks or account misuse. The service tracks dormant accounts that have become active and identifies any customer behavior that differs from their normal patterns.

• Fintech & Payments – Payment and Fintech organizations use transaction monitoring services to prevent fraud. High-risk merchants can be identified, and the service monitors the speed of transactions.

• Crypto & Digital Assets – Transaction monitoring in the crypto industry will analyze blockchains to trace the movement of assets. Monitoring is needed to maintain AML compliance. It also detects any suspicious activity with digital currencies and fiat.

• Gambling & Gaming – These industries use AML transaction monitoring systems to ensure compliance. Suspicious behavior can be detected, and operators can easily file a Suspicious Activity Report. 

Why Qoobiss

Qoobiss provides a single solution to ensure KYC/AML compliance. This end-to-end platform automates the onboarding process and manages the digital journey. Offering scalable options and strict compliance, Qoobiss solves problems with slow onboarding and provides risk management and transaction monitoring.

• Enterprise-grade – Qoobiss provides AML and KYC compliance solutions that automate the identity process when onboarding new customers. It is a scalable and automated solution for organizations that have high-volume processing.

• Modular & Scalable – Qoobiss offers modular components so that companies can choose the services needed. For example, ONTRACE can be used for the onboarding process while OMNICHECK is preferred for ensuring AML compliance. The transaction monitoring solution can be integrated into any Qoobiss platform. Here is why Qoobiss is a good choice for any organization dealing with financial transactions and onboarding.

• Configurable rules – Rules can be configured at any time. The threshold for geographic risk, transaction value and volume, and transaction speed can all be set. 

• Audit-ready – Audit trails are created to provide information on the record of all financial activities. As an audit-ready platform, Qoobiss offers audit logs that can be accessed at any time. 

• Global compliance coverage – Global compliance coverage is provided, and Qoobiss services are continuously monitoring and analyzing financial transactions. Rule and risk-based systems are used to detect any unusual patterns to prevent fraud.

Request a Demo of our transaction monitoring solution.

Talk to Compliance Experts at sales@qoobiss.com.