What is the main objective of transaction monitoring controls?

The primary objective of transaction monitoring controls is to manage financial crime risk effectively. These controls are designed to detect suspicious activities and patterns in financial transactions that may indicate money laundering, fraud, or other financial crimes. By continually monitoring transactions, financial institutions can identify and investigate unusual activities that deviate from expected behavior. This proactive approach helps mitigate the risks associated with financial crime, ensuring compliance with regulatory requirements and protecting the institution's integrity and reputation.

Other choices, while they may have their merits in different contexts, do not align with the core purpose of transaction monitoring. For instance, minimizing operational costs, streamlining customer onboarding, or enhancing public relations efforts do not directly contribute to the identification and management of financial crime risks. Thus, the focus of transaction monitoring controls remains firmly on safeguarding against illicit activities.