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Working the alert queue a transaction-monitoring system produces

Scores the alerts a rules-based monitoring system raises against how that customer, product and corridor have behaved before, groups related alerts into one case, assembles the account history and counterparty links an investigator would otherwise pull by hand, and orders the queue — leaving the decision to file or close with a named person.

Effort
More than a few weeks
Skill level
Engineering skill required
Organisation size
Enterprise
Value
Time saved, Risk reduced

Tools named for this

  • A case-management system that keeps the investigator's reasoning attached to the alert
  • A link-analysis layer over accounts, counterparties and shared identifiers
  • A scoring model retrained on the dispositions investigators actually recorded, not on the rules that raised the alerts

What to check before you ship it in India

  • The disposition must not reach the customer. Under the KYC Master Direction, where a Regulated Entity forms a suspicion of money laundering and reasonably believes performing customer due diligence would tip off the customer, it shall not pursue that process and shall file an STR with FIU-IND instead (para 11A); risk categorisation is confidential and shall not be revealed to the customer (para 12(4)). That constraint shapes the whole tool — case notes, notifications and every path that surfaces a decision to the account holder. Note the scope: this binds Regulated Entities, and an organisation outside that perimeter is not reached by it.
  • For a Regulated Entity the duty is to monitor, not to rank. Paragraph 36 of the Master Direction on Know Your Customer requires close monitoring of large and complex transactions with unusual patterns that are inconsistent with the customer's normal and expected activity and have no apparent economic rationale or legitimate purpose. A model that pushes such an alert to page nine of the queue has not discharged that.

Sources

Every claim on this page traces to one of these, on the date it was read.