Transaction monitoring
payment monitoring
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Ongoing comparison of payments and asset movements with the risk profile of a business relationship, in order to detect and clarify anomalies.
Unusual features include unusually large amounts, payments to third parties without an apparent connection, new high-risk countries or cash. Every alert is clarified and documented with its result.
In practice
In a family office, transactions are fewer than at a bank but often larger and more complex. Effective monitoring checks payments against the expected profile of the structure: unusual amounts, new counterparties, links to high-risk countries or payments that do not match the purpose of the company. Anomalies are clarified and documented with the result; recurring, explained payments can be marked as known to reduce false alerts.
Distinctions and common mistakes
Transaction monitoring examines individual payments and movements; ongoing monitoring also covers whether the client profile, documents and screening are up to date. A typical mistake is thresholds that are never adjusted to the family's actual payment patterns and therefore flag either nothing or far too much.
Relevant in: Switzerland · Germany · Austria · EU-wide
Related terms
- Ongoing monitoring
- Continuous review of a business relationship and updating of client data throughout its duration.
- Suspicious activity report
- A report by an obliged entity to the national financial intelligence unit when there are indications of money laundering or terrorist financing.
Mentioned in these guides
- Transaction monitoring in a family officeHow a family office monitors transactions in line with risk: criteria for anomalies, clarification, documentation and the link to the reporting obligation.