Risk Pyramid in Transaction Monitoring

In the risk pyramid of transaction monitoring, the first phase is Mitigation.

In the risk pyramid of transaction monitoring, assessment phase is responsible for identifying unusual or suspicious transactions.

The system signals a cash transaction above a certain amount as per the selection made by the transaction monitoring analyst.

Identifying transactions going to high-risk countries is an example of a business rule in transaction monitoring.

The investigation framework in the assessment phase focuses on how to analyze financial statements of customers.

Identification in the risk pyramid of transaction monitoring refers to recognizing employees within an institution or company.

Financial institutions should report unusual or suspicious transactions to the Financial Intelligence Unit as soon as possible.

The Financial Intelligence Unit is a place where normal transactions are collected and shared with relevant parties.

The Central Bank of a country plays a role in ensuring financial institutions comply with anti-money laundering regulations.

Late reporting of an unusual transaction does not result in any consequences.

Compliance and senior management do not need to be aware of a client transaction being reported to the Financial Intelligence Unit.

The primary role of the Central Bank is to conduct investigations into unusual transactions.

During the survey process, the customer is not required to provide any documentation at the beginning.

External sources like Lexis Nexis are not consulted during the analysis of transactions in the survey process.

In the survey process, if discrepancies are found in transactions, they are described briefly without detailed investigation.

The final step of the survey process involves contacting the client to provide additional information.

The mitigation phase in the survey process consists of escalation and control measures.

Subjective indicators in the survey process are typically found on the intranet of the financial institution.

In the survey process, a compliance professional always determines the heavier measures that will take place in case of unusual transactions.

The four-eye principle in the survey process involves a review by a Quality Checker or team lead to assess overall quality and identify potential risks.

Professional judgment in the survey process involves using peasants' sense to determine the correctness of a transaction.

After the four-eye principle, internal measures are immediately applied in all cases identified during the survey process.