What is transaction monitoring in the context of SPI compliance?

Transaction monitoring is a control process where payment transactions are continuously reviewed against rules, thresholds or pattern-analysis to detect suspicious, unusual, or potentially illicit activities, such as money laundering or fraud.

What is risk assessment for transactions and customers?

Risk assessment involves evaluating the likelihood and severity of risk associated with customers, transactions, and geographies. It helps define risk profiles to determine appropriate levels of due diligence and monitoring.

How are thresholds and alerts configured?

Thresholds and alerts are configured based on transaction amounts, frequency, customer behavior, geography risk, or other risk indicators. These rules trigger alerts when predefined limits are exceeded or unusual patterns are detected.

Why is data quality important in monitoring and risk frameworks?

Data quality ensures that monitoring outputs are reliable. Inaccurate, incomplete or delayed data may lead to false negatives or positives, hamper investigations, or fail compliance obligations.

Do monitoring rules need regular review and updating?

Yes. As regulatory expectations, threat landscapes, typologies of financial crime, and business operations evolve, monitoring rules, thresholds, and risk profiling must be reviewed and adjusted.

What is the escalation process for suspicious transactions?

The escalation process involves internal review of alerts, further investigation of suspicious transactions, reporting to senior management, and if required, submission of Suspicious Activity Reports (SARs) to relevant authorities.

How do you begin implementing a transaction monitoring and risk assessment framework?

We start with a gap analysis of your current monitoring & risk capabilities, define risk criteria, review available data systems, design monitoring logic and escalation workflows, then implement and tune the framework.

What are common challenges in transaction monitoring for SPIs?

Common challenges include dealing with large volumes of transactions, false positives, ensuring data accuracy, integrating systems, keeping up with evolving regulatory requirements, and maintaining cost-effective monitoring operations.

Transaction Monitoring & Risk Assessment Services

Transaction Monitoring and Risk Assessment Frameworks

Effective transaction monitoring and customer risk assessment are at the heart of a robust AML/CFT compliance framework. Regulators such as the FCA and HMRC expect firms to implement dynamic, risk-based monitoring systems that can detect unusual activity, prevent financial crime, and ensure regulatory reporting obligations are met.

At ABM Global, we design and implement end-to-end transaction monitoring and risk assessment frameworks that balance regulatory compliance with operational efficiency.

Our comprehensive support includes

Client Risk Scoring Models

We help develop tailored methodologies for assessing customer risk at onboarding and throughout the business relationship, taking into account:

These models ensure consistent and auditable client classification into low, medium, or high-risk categories.

Real-Time Monitoring Controls

We design systems that track customer activity against expected behaviour, transaction thresholds, and industry benchmarks. Alerts are generated for unusual activity, ensuring early detection of potential money laundering or terrorist financing.

Escalation & Investigation Protocols

We establish clear procedures for handling alerts, including:

This ensures a structured, transparent approach to managing red flags.

Integration with Business Operations

Our frameworks are practical and scalable, designed to integrate with your existing systems, payment flows, and customer channels—ensuring compliance without disrupting your commercial activities.

Regulatory Alignment

All monitoring and risk assessment procedures are aligned with UK regulations (MLR 2017, FCA Handbook, JMLSG guidance) and FATF recommendations, demonstrating to regulators that your firm operates with a strong culture of compliance.

Ongoing Calibration & Reviews

We ensure your monitoring rules, thresholds, and risk models are regularly updated to reflect:

Management Information (MI) & Reporting

We develop frameworks for producing AML dashboards and management reports, enabling senior management and regulators to see clear evidence of your compliance efforts.