Transaction Monitoring Software - For Securing Financial Assets

 Transaction monitoring software is the prime weapon to combat offenders. Money launderers are the ones businesses and financial institutes frequently interact with. It is tough these days to get on board with a firm or financial entity if there are global IDV solutions being practiced. 

Some of them get conveniently exposed during automated client verification procedures while many succeed in bypassing the gates due to either no previous record or falsified documents. The transaction monitoring software is what takes control from there. In (Know Your Transaction) KYT Verification, the system filters out indicators of money laundering and other financial violations with sheer convenience and ease. 

The KYT solution provider observes transactional activities of all clients to keep the financial organization away from the witness box of regulatory authorities and financial watchdogs.

Process of Real-Time Transaction Reporting System

At the time of initial (Anti Money Laundering) AML verification on the basis of results of the IDV solutions: the sanctions, warning lists, and other data, a specific rating is given to every customer. The rate describes the level of threat of dealing. The transaction monitoring software becomes a consistent part of AML checks.

When the client opens up an account, for risk rating allocation and categorizing the particular account, the bank authority asks the customer to specify the figures of deposit and withdrawal. The transaction monitoring software contributes to the risk rating. For instance, if the client says that the annual deposit range would be $12 million and it will be withdrawn every month. The number of transactional activities on an annual basis would be ten, making the amount per transaction around a million. The specific figures are included in the database. The transaction monitoring software would observe if the volume of the transacting amount is surpassing the calculated average figure. 

The transaction monitoring software contains the numeric data of every client which alerts the AML verification solution. From there the concerned financial firm acknowledges the situation and supporting data.

Preventing Money Laundering Activities

The KYT verification maintains the compliance of a particular financial institute with concerned regulatory power by spotting substantial funds transfer activities and enables the firm to report to them before time. The transaction monitoring software is practiced throughout the year for ongoing AML screening. The documentary evidence of all suspicious transfers of funds is constructed in the form of a report which is known as SAR (Suspicious Activity Report) by the bank or cryptocurrency exchange.

The sheer significance of transaction monitoring software identifies possibilities of money laundering that restricts so many other violations and brutal acts. For instance:

  • Drug Trafficking

  • Financing Terror Attacks

  • Corruption

  • ID Theft

Role in ID Theft

As said before, the transaction monitoring software is an integral part of AML screening which is of the KYC (Know Your Customer) verification. So all these procedures and technologies are linked together, making the compliance program of a particular financial institute or platform rigid and full-proof.

In case of a stolen ID, the fraudster immediately attempts to empty the account of the victim before his acknowledgment. The transaction monitoring software identifies the substantial amounts going beyond the threshold range. 

Subsequently, the client is asked for biometric consent verification where the person has to upload an image with a handwritten note. The note and the image are validated due to the AI-powered network and the deep learning algorithm. The automated system would spot spoof attacks or any other false trait if there are any. 

The authority would identify the unauthorized usage, the client would be informed instantly and the entire situation gets under control seamlessly with an efficient transaction monitoring software integrated with supporting automated solutions.

Importance in Cryptocurrency

The transaction monitoring software in decentralized networks can usually trace terrorist networks and other offenders. The virtual currency platforms are used for avoiding tax and other illicit activities. For instance, a group of drug dealers was discovered on a platform with bitcoin worth almost $16 million. The funds without systematic KYC verification and check can increase by substantial numbers and can be invested in countless crimes. An efficient transaction monitoring software, therefore, is mandatory for every such business or platform for accomplishing sustainable global development goals.


The level of fraudsters and their acts is picking pace at a very swift rate. Every potential business is a target and can’t be left in such a mess. The transaction monitoring software examines the flow of transactional activities on a constant basis. Depending upon the accuracy of the real-time reporting system, firms in the financial sector can perform additional due diligence practices and protect their name from getting tarnished. Transaction monitoring software is a must to excel.