The basic purpose of “monitoring” is to identify and protect the institution from transactions that may lead to money laundering and terrorist financing.
Transactions should be monitored based on a customer profile and specific details relating to that customer.
Pay special attention to all complex, unusually large transactions and all unusual patterns which have no apparent or visible purpose.
Prescribe threshold limits for a particular category of accounts and pay particular attention to the transactions which exceed these limits
Key indicators – background of the customer, such as the country of origin, sources of funds, the type of transactions involved and other risk factors.
Put in place a system of periodical review of risk categorization of accounts and the need for applying enhanced due diligence measures. Such review of risk categorization of customers should be carried out at a periodicity of not less than once in twelve months.