Guidance for Effective AML/CFT Transaction Monitoring Controls
MAS conducted a series of thematic AML/CFT inspections that examined the effectiveness of banks’ transaction monitoring (“TM”) frameworks and processes. This guidance paper reiterates the key recommendations by MAS to the inspected banks, setting out our supervisory expectations of sound practices for the effective conduct of TM. Additional context can be found in the box stories throughout the paper of case studies taken from MAS’ onsite findings and our recommendations to financial institutions ("FIs").
While this guidance paper is derived from MAS’ banking inspection findings, the supervisory expectations and best practices therein are, with the appropriate modifications, relevant and applicable to other FIs. FIs should therefore incorporate the learning points from this guidance paper in a risk-based and proportionate manner, giving proper regard to the profile of their business activities and customers. In doing so, FIs should note that the takeaways in this paper are non-exhaustive, and that they should continue to strengthen and refine their TM models according to their respective needs and context.(261.4 KB)