Effective and sound ML/FT risk management

Ongoing monitoring Procedure

For effective and sound ML/FT risk management, ongoing monitoring is an essential aspect. The International Finance Corporation (2019) posits that to manage risks effectively, a bank should understand its customers’ reasonable and customary banking activities that allow the bank to detect unusually or attempted transactions that fall out of the standard banking activity patterns. Lack of such knowledge leaves gaps that make financial institutions fail in identifying and reporting suspicious dealings to relevant authorities (International Finance Corporation, 2019).  All business transactions and relationships should be conducted with ongoing monitoring. Nonetheless, the degree of monitoring should be founded on risk as indicated in the bank’s customer due diligence efforts and risk assessment.   

Don't use plagiarized sources. Get Your Custom Essay on
Effective and sound ML/FT risk management
Just from $13/Page
Order Essay

According to Basel Committee on Banking Supervision (2017), financial institutions must look into their customers’ transactions and conduct a bordering service or product inspection to identify and lessen evolving patterns of risk. Moreover, all banks should put in place systems that detect suspicious or unusual patterns of transactions activities.  To establish a scenario where the risk management team will identify such activities,  a bank should consider developing customers’ risk profile according to the information collected during its CDD efforts, risk assessment conducted by the bank, and more data collected from authorities like law enforcement and others under its control (Basel Committee on Banking Supervision, 2017). For instance, a bank could be conscious of specific arrangements or schemes to launder profits of crime occurring in its jurisdiction as noticed by authorities. In part of its risk assessment process, the bank will assess the threat of these activities linked to these activities that may be happening in the bank by classifying and grouping accounts, customers, product usage, or transaction pattern (Basel Committee on Banking Supervision, 2017).  As per this knowledge, the risk assessment team should structure and apply necessary monitoring con trolls and tools to ascertain such activity through computerized monitoring systems or setting limits to specific categories or classes of activities.  

How to place an order?

Take a few steps to place an order on our site:

  • Fill out the form and state the deadline.
  • Calculate the price of your order and pay for it with your credit card.
  • When the order is placed, we select a suitable writer to complete it based on your requirements.
  • Stay in contact with the writer and discuss vital details of research.
  • Download a preview of the research paper. Satisfied with the outcome? Press “Approve.”

Feel secure when using our service

It's important for every customer to feel safe. Thus, at University Study, we take care of your security.

Financial security You can safely pay for your order using secure payment systems.
Personal security Any personal information about our customers is private. No other person can get access to it.
Academic security To deliver no-plagiarism samples, we use a specially-designed software to check every finished paper.
Web security This website is protected from illegal breaks. We constantly update our privacy management.

Get assistance with placing your order. Clarify any questions about our services. Contact our support team. They are available 24\7.

Still thinking about where to hire experienced authors and how to boost your grades? Place your order on our website and get help with any paper you need. We’ll meet your expectations.

Order now Get a quote

error: Content is protected !!
Open chat
Need assignment help? You can contact our live agent via WhatsApp using +1 718 717 2861

Feel free to ask questions, clarifications, or discounts available when placing an order.

Order your essay today and save 30% with the discount code STUDY