AML Transaction Monitoring Request to Information: A Detailed Guide

AML Transaction Monitoring Request to Information: A Detailed Guide

The Transaction Monitoring Request for RFI is a report centered around the requests coming about because of the exchange observing cycle. AML monitoring has observed a lot of acquired sufficient consideration because of the increasing illegal tax avoidance cases. Read through the blog to know more.

So, here is a big revelation from the recent research.


Money laundering cases cost our country crores every year. Despite the technological advancement and maintenance of a solid security team, money launderers are digging a hole in our finances. The money we lose to the criminals can be used in many ways and improve the country's financial state. Knowing the facts, we can still not combat the financial breaches altogether. Maybe it is high time we turn our heads to improve the security system for the safety of our collective finances. 


The government guidelines are strictly based on the effort of avoiding or blocking financial crimes. Financial institutions in every country are facing money laundering cases and should definitely invest in the security of the same. Companies, businesses, and financial institutions now sincerely follow the AML regulatory requirements. Since no establishment is immune to money laundering, adhering the government guidelines is imperative. 


Let’s start with one such preventive measure followed by the institutions.

What is AML Transaction Monitoring?

As the term evinces, transaction monitoring is the process of following, tracking or monitoring the transactions. Any unusual or unfamiliar activity can be detected as the area to be focused on.


AML transaction monitoring gives financial institutions an upper hand in managing the risk factors. It helps the institutions keep track of their customers' transactions and financial activities. It is one of the most effective ways to combat or prevent financial fraud. 

AML TMS helps financial institutions and companies to comply with the regulations issued for AML and CFT. 

AML TMS can be a breakthrough adoption for financial institutions and companies. Keeping an eye on customers' activities can give them a heads up about illicit activities. Financial frauds are no more than the loss of money. But, money laundering is also associated with terrorist financing and indulging in illicit activities. Anything that goes wrong with the money issued by the institutions can directly impact the reputation of the institutions or companies. So, AML TMS is a safeguard against reputation risk.

What is AML Transaction Monitoring Request for Information (RFI)?

The Transaction Monitoring Request for information or RFI is a document focused on the inquiries resulting from the transaction monitoring process. The motive of the document is not to address the inquiries issued following the blocked transactions or as an outcome of the sanctions screening or transparent payments.


The Request to Information (RFI) is yet another AML regulatory requirement that contains proof and necessary information about the event. If a necessary investigation follows unusual financial activity, it asks for an RFI. If the document seems to have less or missing data on the event, the RFI should be initiated to the concerned department. 


RFI holds a vital role in the investigation of any unusual financial event. Companies and financial institutions require a properly maintained document that helps understand the case deeply. All the strange or suspicious events caught while monitoring customer transactions can be stored in a document for the authorities to check and investigate. 


Transaction Monitoring Request for Information (RFI) Best Practice Guidance has been rolled out in Aug 2022 by Wolfsberg Group. The document aims to improve the awareness about the value that RFIs (or inquiries) provide in a correspondent banking relationship. It also applies to other payments-based relationships. It provides guidance of how RFIs should be handled, what types of questions are being asked, the purpose of the question, the role of RFIs in mitigating financial crime risks, and the benefits of effective RFIs and responses.

What is the Role of Transaction Monitoring?

AML monitoring has recently gained enough attention due to the surging money laundering cases. Transaction monitoring has been a great part of combatting and controlling the hike in financial breaches. Businesses, companies, and financial institutions have numerous activities and transactions happening. To prune out the risk factors can be difficult for them. Instead, opting for a transaction monitoring process can be effective. 


Of course, managing transaction records and maintaining good books can be helpful. However, the transaction monitoring process can give instant results and control financial breaches. 


  • The AML TMS would directly take the information from the KYC records and encounter any misconduct that happened at a particular time. 
  • The TMS then filters out the risk measures associated with the different customers. The system collects the unfamiliar activities and files them in the documents issued for investigation and identification of risk entries. 

The transaction monitoring system acts as a security guard that checks all the entries and monitors the overall transactions. 

The Process of AML Transaction Monitoring

AML TMS can perform searches of millions of transactions. Financial institutions, companies, and businesses can simply automate the transaction monitoring system. The system is a requirement that every institution or company should access. 


The companies or institutions can fix a standard transaction amount for the customers. The system will alarm the authorities if the transaction amount exceeds the set amount. Money laundering or terrorist financing is usually done in a very misleading manner. It either credits a huge amount of money to the fake accounts or is planned with the processing of small amounts in regular intervals. So, focusing on just big amounts would do no good. The criminals usually impersonate someone else to fool the authorities.


Detecting all these illegal activities manually is difficult. AML TMS can make the process of identifying risk factors easier.

How is Smart Infotech a Part of AML Solutions?

Smart Infotech is winning the hearts of companies and institutions by providing the best-ever AML software named AML-TRACE. The software is specially designed to control money laundering cases in multiple industries. No matter what type of business or company, AML-TRACE is equally effective for everyone. 


Manual handling of money laundering cases has been a back-breaking process. Maybe it is time for smart work! AML-TRACE is possibly the smartest software you can access for your company. 


Learn more about the software on our official website.