The Critical Role of Ongoing Monitoring

In the realm of financial services, the battle against money laundering and terrorism financing requires constant vigilance. For entities operating within Australia and New Zealand's financial landscape, compliance with Anti-Money Laundering (AML) and Counter-Financing Terrorism (CFT) regulations isn't a one-time task—it's an ongoing commitment. Enter ongoing monitoring—a vital practice often deemed as the backbone of regulatory compliance.

In this blog, we discuss the significance of ongoing monitoring, its methodologies, and why organisations should be considering GBG’s Ongoing Monitoring as the ultimate tool equipped with unparalleled Politically Exposed Person (PEP) and sanctions watch list screening capabilities.

Why monitor continuously? 

1. Regulatory compliance: regulatory requirements are subject to frequent updates and amendments. Ongoing monitoring ensures that entities remain abreast of these changes, adapting their compliance practices accordingly to avoid penalties and reputational damage. 

2. Risk mitigation: financial crime risks evolve over time, necessitating continuous assessment and mitigation efforts. Ongoing monitoring enables entities to identify suspicious activities, unusual patterns, and emerging risks associated with their customer base, thus safeguarding against illicit financial transactions. 

3. Early detection of red flags: by monitoring customer transactions and behaviour in real-time, entities can swiftly detect red flags indicative of potential money laundering or terrorism financing activities. Timely intervention mitigates the risk of financial losses and regulatory breaches. 

How to conduct ongoing monitoring?

1. Transaction monitoring: implement robust systems and processes to monitor customer transactions in real-time. This includes analysing transaction patterns, amounts, and frequency to identify anomalies that may warrant further investigation.

2. Customer profile updates: regularly update customer profiles with the latest information, including changes in personal details, transactional behaviour, and risk indicators. This ensures that customer risk assessments remain current and accurate.

3. PEP and Sanctions screening: screen customers against Politically Exposed Person (PEP) lists and sanctions watch lists to identify individuals with elevated risk profiles. Conduct regular screenings to ensure compliance with regulatory requirements and mitigate the risk of engaging with high-risk entities.

4. Alert management: establish protocols for managing and escalating alerts generated during the monitoring process. Define thresholds for suspicious activity and implement procedures for investigating and reporting potential instances of financial crime.

Why GBG? 

GBG’s identity verification solution stands out as an indispensable ally in the realm of ongoing monitoring, offering unrivalled PEP and sanctions watch list screening capabilities.  

Here's why it's the preferred choice: 

1. Comprehensive data coverage: leverages an extensive network of data sources to screen customers against global PEP and sanctions watch lists. This comprehensive coverage ensures that entities can identify and mitigate risks associated with high-risk individuals effectively. 

2. Real-time screening: enables real-time screening of customer profiles, allowing entities to promptly identify and address potential compliance risks. Automated screening processes streamline the monitoring workflow, enhancing efficiency and responsiveness. 

3. Configurable alerts: offers configurable rule settings, allowing entities to define thresholds for suspicious activity and tailor alert notifications according to their risk tolerance and compliance requirements. This enables proactive risk management and timely intervention. 

4. Audit trails and reporting: provides robust audit trails and reporting functionalities, enabling entities to document and track screening activities for regulatory compliance purposes. Detailed reports demonstrate adherence to regulatory requirements and facilitate transparency with regulators and stakeholders. 

Ongoing monitoring is a cornerstone of regulatory compliance for AML/CFT obligated entities in New Zealand. By embracing continuous monitoring practices and leveraging GBG's identity verification solution, entities can effectively mitigate financial crime risks, ensure regulatory adherence, and safeguard their reputation and integrity in an ever-evolving financial landscape.