What is the primary goal of transaction monitoring in AML audits?

The primary goal of transaction monitoring in Anti-Money Laundering (AML) audits is to detect suspicious activity and ensure legal compliance. This process involves continuously reviewing transactions to identify irregularities or patterns that may indicate money laundering or other financial crimes. Effective transaction monitoring helps organizations comply with regulatory requirements and mitigate risks associated with financial crime, thereby protecting the institution and its stakeholders.

Transaction monitoring systems analyze transactions based on established criteria, which can include transaction type, amount, frequency, and geographic origin. When these systems flag suspicious behavior, it prompts further investigation, allowing organizations to take appropriate actions, such as reporting to financial authorities or enhancing due diligence on particular accounts.

While assessing staff training, measuring customer satisfaction, and verifying annual reports are important aspects of overall organizational health and performance, they do not align fundamentally with the specific objectives of transaction monitoring within the context of AML audits. These other areas may contribute indirectly to compliance and risk management strategies but are not the primary focus of transaction monitoring.