Addressing the transaction monitoring requirements of the Central Bank of Ireland

A look at requirements set out by the Central Bank of Ireland (CBI) for organisations operating in the Republic of Ireland, and how advanced transaction monitoring strategies will help them comply.

A need for transaction monitoring reporting

A large UK-headquartered pensions LexisNexis® Risk Solutions client recently came under scrutiny from the Central Bank of Ireland (CBI) for having inadequate transaction monitoring reporting processes in place.

The client was given a deadline by which to appoint a technology delivery partner and implement a project plan to address their shortfalls. We believe it is likely that the CBI will begin to quiz more companies going forward regarding the transaction monitoring provisions that they have in place.

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Countering anti-money laundering and financial crime

The questioning of this situation comes in relation to a specific anti-money laundering act as explored in the CBI’s Anti-Money Laundering Bulletin on Transaction Monitoring.

To summarise, it specifies that companies operating in the Republic of Ireland must have a designated person responsible for monitoring customer transactions that may be suspicious in nature.

Along with this, the intensity of the monitoring should increase with the complexity and scale of those transactions, so that the risk of money laundering and/or terrorist financing is also factored into the transaction monitoring process, going forward.

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To help address the requirements covered in this act, organisations will need:

  1. A solution that will allow them to profile customers based on ‘expected behaviours’ by analysing their past behaviours to determine how they use these products. In turn, this will enable businesses to identify and flag unusual behaviours.
  2. Organisations require a solution that can deliver case management functionality. This should include workflow functionality that would support them through the various stages of an investigation.
  3. The solution should include functionality to develop rules that can be tested and implemented, thereby allowing them to react to new threats accordingly.
  4. A solution that can create a suite of Management Information (MI) should be considered. This addresses the requirement to analyse multiple data sets, including but not limited to, financial transactions and customer behaviours.

LexisNexis® RiskNarrative™

Quickly onboard high customer volumes with a single, unified anti-money laundering, fraud, compliance and risk management platform. Manage and configure all financial crime lifecycle journeys with simple integration and no need for coding.

The role of transaction monitoring

Following a comprehensive review, the client has selected LexisNexis Risk Solutions to deliver a transaction monitoring solution via the LexisNexis® RiskNarrative™ platform, which will put them in good stead to meet all of the regulator’s requirements, whilst helping safeguard the business from risks associated with fraud and negative reputational exposure.

The benefits of transaction monitoring

The transaction monitoring capabilities of RiskNarrative™ can allow organisations operating in the Republic of Ireland and globally to addresses current transaction monitoring regulatory requirements set out by the CBI and other regulatory authorities. RiskNarrative is a risk orchestration platform capable of delivering end-to-end KYC/KYB initiatives from a financial crime compliance and fraud mitigation perspective.

In addition to this solution, the client in question also utilised the power of LexID, applying it to over 4 million of their members to gain a comprehensive single customer view, streamlining operations and providing a clear audit trail of all actions throughout the any journey. LexisNexis™ LexID is proprietary data linking technology that draws from over 70 public and private sources, enabling businesses to cleanse and append their customer data to achieve very high levels of data accuracy.

We welcome expanding on the above with a view to determining if we may be able to support you with your transaction monitoring obligations. Please get in touch to discuss.

Find out how we can support you with your transaction monitoring obligations

Book a free, no-obligation consultation to find out more.

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