Why Know Your Transaction is a Jump on the Bandwagon


Businesses have found themselves in inescapable moments such as facing fraudulent activities. The modern world shift to digital technologies has given rise to many threats, scams, and frauds. Hackers and scammers utilize revolutionary technology such as artificial intelligence to perform their heinous illegal activities. 

It’s time for businesses to wake up so that these activities can be put to a halt. Businesses must increase their securities and fight against these battles once and for all. Know your customer verification is the only choice businesses have now and there is no going back. Although KYC is the paradigm to reduce threats, KYT is one step further. 

Why KYC Verification is a Drop in the Ocean?

Financial institutes are bound to adhere to complex stringent regulations. For example, regulations such as KYC require verifying the customer before onboarding them. Some countries have an array of rules and regulations already set, while some still have to develop simple day-to-day rules. Regulations ensure transparency and honesty with the customers and build strong client relationships. However, many businesses still rely on old verification procedures that are inadequate and inefficient. Hence, monitoring ongoing processes or a follow-up can be least expected. Additionally, there are some corporations that still keep customer records on paper. Consequently, financial structures cannot keep up with changing regulations and conduct due diligence ineffectively, resulting in a bad customer experience. 

But thanks to innovative AI algorithms, which have enabled robust, reliable, cost-effective, on-point KYC solutions. But businesses must keep in mind that KYC verification is not enough, and diligent. KYT is important to avoid money laundering activities and terrorist financing, and the smuggling of drugs and humans. In addition, businesses need to know what type of activities their associated companies deal with and what type of transactions are done. 

Know Your Transaction Verification – The Inescapable Verification

Detecting high-risk transactions to effectively combat illegal activities such as money laundering and terrorist financing with partnering businesses refers know your transaction verification. The transaction monitoring process allows financial profile screening, background checks of the end-user, and monitoring risky activities. These processes ensure effective monitoring of transactions that generate Suspicious  Activity Report (SARs). It allows real-time analysis of the user and building a report of the basis of those results. Hence, providing reports to regulatory authorities of risky high profiles for effective monitoring to combat illegal activities. 

Significance of KYT Solution Provider 

Significance of know your transaction monitoring is spread across the financial system. The list:

  1. Know your transaction aids corporates to develop an impressive reputation in front of regulatory authorities and partnering businesses. The maintenance of audit reports that show transactional monitoring is essential to combat frauds. 
  2. Monitoring transactions performed easily without technical support all the time. This is because the monitoring process is much more effective and efficient now. 
  3. Transaction monitoring is effective in catching money laundering or terrorist financing activities. It also helps organizations identify loopholes within their businesses. 
  4. Anti-money laundering transactions helps businesses reduce needless red flags and unnecessary monitoring by making decisions based on regulations. 

Here is the list of financial transactions monitoring during the process of the KYT solution provider. 

  1. Remittance transfers
  2. Trading transactions 
  3. Line of credit transactions 
  4. Board transactions 
  5. Cash payments 
  6. Credit and debit card transactions 

What is a Transaction Monitoring System (TMS)?

The transactional monitoring system is the most essential and crucial part of the financial infrastructure. It is based on developing risk-based AML criteria that can efficiently track and monitor transactions. Through these operations, businesses can withstand high-risk profiles and evaluate customers’ history. 

What is Know Your Transaction Limitations?

When businesses are not alert about risky profiles, and they have to face hefty fines. Additionally, know your transaction limitations also occur when businesses are not aware of non-dangerous profiles and have to perform monitoring uselessly. 

Penny For Your Thoughts 

The world needs to act now because these threats have put businesses into sink-or-swim moments. It’s high time businesses start adopting know your transaction monitoring along with know your customer verification. It is the need of the hour to adopt practices with the changing and advancing world. Businesses can make sure they comply with KYC AML regulations when performing transaction monitoring. They can also benefit CFT compliance and mitigate the risk of frauds, scams, and thefts. 


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