Case study: Where is the risk in transaction monitoring?

Abstract

How to fight money laundering and comply with anti‐money laundering legislation in a way that is both cost effective and precise? Many banks are struggling with this question. This paper presents a case study discussing the pros and cons of implementing a transaction monitoring system. Dexia Banque Internationale Luxembourg (Dexia BIL) chose ERASE (Efficient Risk Analysis System Enhancement), a monitoring solution provided by NetEconomy of the Netherlands. The paper examines why such a system is needed, what kind of objectives a system should meet, how to identify unusual and suspicious activity, and the potential problems that may be encountered.

Citation

Veyder, F. (2003), "Case study: Where is the risk in transaction monitoring?", Journal of Financial Regulation and Compliance, Vol. 11 No. 4, pp. 323-328. https://doi.org/10.1108/13581980310810606