How often should ongoing transaction monitoring be performed?

Ongoing transaction monitoring should be performed continuously to ensure that all transactions are analyzed in real-time or as they occur. This approach allows financial institutions to promptly detect suspicious activities, enabling them to act swiftly to mitigate risks associated with money laundering and other financial crimes. Continuous monitoring is essential for maintaining compliance with anti-money laundering (AML) regulations, as it helps institutions keep abreast of changing customer behaviors and emerging threats in the financial landscape. By observing transaction patterns continuously, organizations can identify anomalies as they happen, assessing risks more effectively compared to periodic monitoring, which may allow questionable transactions to go undetected for longer periods.

Thus, the practice of continuous monitoring aligns with regulatory expectations and best practices in the fight against financial crimes, ensuring institutions remain alert and responsive.