What are Compliance and Transaction Monitoring?

What is Compliance Monitoring?

Compliance monitoring is the process and technology used to detect compliance and risk issues associated with an organization's financial and operational environment. The financial and operational environment consists of people, processes, and systems working together to support efficient and effective operations. 

Controls are put in place to address risks within these components. Through continuous monitoring of the operations and controls, weak or poorly designed or implemented controls can be corrected or replaced – thus enhancing the organization’s operational risk profile. Investors, governments, the public and other stakeholders continue to increase their demands for more effective corporate governance and business transparency.


What is Transaction Monitoring?

Transaction Monitoring is a fraud detection for identifying fraudulent online and mobile activity in real time. With the sharp rise in Trojan attacks including man-in-the-browser (MITB) attacks, proactively monitoring online and mobile transactions is a crucial component of a layered security strategy.

Transaction monitoring systems use profiling and/or rules-based monitoring methods.

•    Profiling identifies unusual patterns of customer activity by applying statistical
modelling techniques. These compare current patterns of activity to historical activity
for that customer or peer group.
•    Rules-based monitoring compares customer activity to fixed pre-set thresholds or
patterns to determine if it is unusual.