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One Missed Transaction: Risks That Can Sink Money Service Businesses

Running a money transfer business means you have two very important goals:

  • Keeping customers happy
  • Stopping criminals from using your service.

But how can you do both at the same time? The answer is smart and simple: your money transfer software (back-office/admin panel) should have bank-grade transaction monitoring capabilities.

Let's break down what that means and how it works.

What is Transaction Monitoring?

Transaction monitoring is like having a security guard who automatically watches every single transaction that happens on your platform. This "guard" is your software, and it's trained to look for specific warning signs (often called risk indicators) that a transaction might be fraudulent or illegal.

Instead of slowing things down by checking everything by hand, good transaction monitoring software does this work instantly in the background. It helps you catch problems fast while letting good transactions go through smoothly.

How Transaction Monitoring Works: Key Warning Signs

Effective transaction monitoring software looks for several different kinds of warning signs. Here are some of the most important ones:

1. Checking Who Your Customers Are

First, the system makes sure your customers are who they say they are.

  • Mismatched Information: It checks if the name and birthday a customer entered match the details on their official ID, like a passport. If they don't, that's a warning sign.
  • ID From a High-Risk Country: The system flags if a customer's ID was issued by a country known for higher rates of financial crime.
  • Checking for Multiple Accounts: It looks for signs that one person might be trying to use several different accounts to avoid being noticed.

2. Watching How Customers Behave

Next, it watches for strange or unusual transaction patterns.

  • Unusual Frequency or Amount: It flags when a customer suddenly starts sending money much more often, or in much larger amounts, than they normally do.
  • Suspicious Patterns: It spots if different accounts seem to be working together in a sneaky way. This is a common trick used to hide illegal funds.
  • Many Failed Transactions: If a card is declined over and over again, it could mean a fraudster is trying to test stolen card numbers.

3. Looking at Location and Payment Details

The system also checks where the money is coming from and how it's being sent.

  • Payment from a High-Risk Country: It raises a flag if a payment is made with a card or bank account from a high-risk country, even if the customer is somewhere else.
  • Sanctions List Check: This is a crucial step. The software automatically checks if the sender, the receiver, or the person whose name is on the credit card is on any official government sanctions lists.

From Warning Signs to Action

A good transaction monitoring system doesn't just find warning signs—it acts on them. You can set up simple rules in the system. For example, you could create a rule like this:

“IF a new customer tries to send a large amount of money from a high-risk country, THEN automatically pause the transaction and notify a team member to review it.”

This automates your safety process, saving you time and protecting your business 24/7.

Why Good Transaction Monitoring is a Must-Have

For any MSB, a strong transaction monitoring system is not just a nice feature—it's essential. It helps you:

  • Prevent Fraud and Crime: Protect your business and your honest customers.
  • Follow the Law: Meet your AML (Anti-Money Laundering) and compliance duties.
  • Build Trust: Show banks and regulators that you run a safe and responsible business.
  • Save Time: Automate your security so you can focus on growing your business.

The security we've discussed isn't a premium add-on; it's the standard for every RemitSo partner. We believe powerful and easy-to-use transaction monitoring is essential for your success.

Curious to see how these features work in a live system?

Request Demo

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