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Using transaction monitoring to better detect and disrupt financial crime

Using transaction monitoring to better detect and disrupt financial crime

Swift Institute,
26 May 2021 | 2 min read

New research commissioned by Swift Institute analyses the current financial transaction monitoring model and suggests opportunities for the future.

Fraudsters and money launderers are constantly evolving their tactics. In order for the financial community to stay ahead it is vital that it regularly evaluates the methods it uses to detect and stop crime. To that end, Swift Institute commissioned a report assessing the current state of transaction monitoring to better understand its strengths, weaknesses and how it could be improved.

The future of Transaction Monitoring:
Better ways to detect and disrupt financial crime

Download report

Authored by Matthew R. Redhead, Associate Fellow at the Royal United Services Institute (RUSI), the report analyses the scale of investment in transaction monitoring, the balance between costs and benefits and the overall effectiveness of the suspicious transaction-reporting regime.

The report unpacks the difficult position that FCC teams often find themselves in – caught between internal pressures to manage costs, and regulators’ requirements that they maintain broad coverage of relevant risks. It also addresses the widespread desire across the AML/CFT ecosystem to reduce waste and improve the delivery of actionable and relevant financial intelligence.  

It goes on to explore industry initiatives for innovation and reform, assessing existing pain points and potential alternatives. It outlines 10 recommendations for improving the existing transaction monitoring system -- changing what financial institutions look for when monitoring suspicious behaviour, embracing better machine learning technology, and harnessing the power of national regulators to effect a far greater change than individual organisations can achieve alone.

To learn more about the role that improved transaction monitoring systems can play in the fight against money laundering, download the report summary. Or to read about it in more detail read the full paper.

Download the report summary