Utilizing Transaction Monitoring To Reduce Regulatory Workload
More than half a decade on from the implementation of Tranche One of Australia’s Anti-Money Laundering and Counter-Terrorism Financing Act, financial institutions have incorporated AML/CTF into their ‘business as usual’ processes. However, as regulatory scrutiny continues to increase and the volume of regulatory change intensifies, more and more man hours are being exhausted on everyday compliance challenges such as Know Your Customer (KYC) and Transaction Monitoring (TM).
These challenges are being seen across the board with many financial institutions, large and small, now experiencing regulatory fatigue. A CEO Survey Report published by the Financial Services Council (FSC) has noted that the increased “regulatory burden meant that [organizations] were diverting resources, including their best staff, to compliance-related projects”. In a key finding from the report, chief executives indicated that they were leaning more and more towards IT solutions as part of their overall compliance framework. Most of the chief executives interviewed expected to increase their IT budgets over the next two years to reduce this burden on staff and enable the organisation to stay competitive whilst complying with new regulatory demands.
While historically, Transaction Monitoring systems have been implemented mainly by banks, nowadays more and more organizations such as superannuation funds, finance brokers and asset managers have begun to move towards a more comprehensive, automated solution.
This has enabled them to:
- Reduce the manual workload of staff
- Provide a centralized view of client data and activity
- Maintain an electronic audit trail of investigations
- Introduce reporting with improved analytics
- Detect instances of fraud within the business
In today’s business environment it has become increasingly apparent that in order to stay competitive and comply with both existing, and new regulation, financial institutions, regardless of their size, need to consider how to reduce the strain of regulatory fatigue. To learn more about how Accelus Transaction Monitoring can bring together leading content and technology to meet your regulatory obligations more efficiently please follow the link below.