What is transaction monitoring and why is it important?

High value or low value: transaction security is essential. Thankfully, with 3S Money, your money is in safe hands.



Part of that process is transaction monitoring, the key to secure, fuss-free international money transfers. But what exactly is transaction monitoring, and why is it so important? In this article, we'll answer that question and more.


What is transaction monitoring?


Transaction monitoring (sometimes shortened to TxM) is a system that tracks an account's real-time transactions, including deposits, payments, transfers, and withdrawals.



An always-on transaction monitoring process is an excellent security tool. It allows financial institutions to quickly identify suspicious transactions, such as money laundering, and stop any illegal activities.


Transaction monitoring is a crucial part of 3S Money's security toolkit and ensures that all our clients can initiate payments with peace of mind.


How does transaction monitoring work?


Transaction monitoring systems analyse an account's history to build a picture of its behaviour, allowing it to predict future activity and create risk levels accurately. Should anything out of the ordinary occurs, a transaction processing system would pick it up instantly and create a Suspicious Activity Report (SAR for short). From here on, the financial institution must submit this report to the relevant authority.


This security system can be automated, manual or a mix of the two. An automated transaction process often will spot unusual account activity and flag it for an employee to decide. At 3S Money, we always prefer a human touch, making secure yet common-sense decisions regarding your account.


What is an example of transaction monitoring?


You may even have experienced a transaction monitoring process through your finances. If you've ever received a call from your bank asking you about specific transactions, that is likely the transaction monitoring process in operation. The bank will monitor your account activity and build a picture of your typical transactions.


If an unusually high cash withdrawal or an irregular transaction is made, monitoring will pick it up and alert the bank. With this security, your account is in a much more secure position. 


Why is transaction monitoring so important?


Transaction monitoring is crucial to any financial institution's security processes because it can stop crimes before they happen. With cross-border payments only increasing yearly, these security procedures save millions of dollars annually, keeping both personal and business accounts shielded from crime. Without transaction monitoring, a company could suffer:


  • Financial loss

  • Reputational loss

  • Compromised information or private data


On top of putting a halt to the above, trust between consumer and bank is another valuable aspect of a transaction monitoring structure. The bank feels confident that its consumers are safe, and that consumers or businesses can use their accounts with confidence.


How secure are 3S Money transfers?


At 3S Money, security will always be at the top of our priority list. We are not a bank but an Electronic Money Institution. This means we are regulated by different organisations in various countries, including:


  • The Financial Conduct Authority in the UK

  • The Commission de Surveillance du Secteur Financier in Luxembourg

  • The Dubai Financial Services Authority in Dubai


Through these institutions, we are legally required to safeguard and keep your money safe. With 100% liquidity, our correspondent banking partners protect all our funds for your company. The result? Your money is always fully protected, even if we enter administration.


Alongside our transaction monitoring and safeguarding system, our organisation also makes Compliance and Know Your Customer (KYC) checks compulsory when opening a new International Business Bank Account. These are designed to terminate money laundering before it occurs and add another layer of security to our systems.


Finally, it's worth mentioning that 3S Money always adds a human touch to our services and a risk-based approach to clients worldwide. This mixed approach means we are always on top of security for every account.


Why pick 3S Money?


On top of the obvious security benefits, there are plenty of other reasons why you should choose 3S Money's International Business Account over traditional banks and other fintech companies. Here are some of the very best:


  • The ability to send, receive and exchange high-value payments in over 190 countries.

  • Local EU, UK, and US account details, including Germany, Luxembourg, and the Netherlands.

  • Quicker processes and less bureaucracy than traditional banking.

  • Access to 65+ currencies in an instant.

  • Safety is guaranteed with every transaction.

  • A dedicated client manager is assigned to every client.


For more information about our safeguarding processes, you can read more here. Are you interested in getting started? It couldn't be easier - simply check your eligibility and fill out the application form to kick-start the process. Our team will set up a quick welcome call, and your account will be ready in a few days - simple, secure, and fuss-free.



Last updated: 05/03/23



Need further assistance?

Get in touch to learn more about service and get help from our dedicated support team

Subscribe to our newsletter to receive latest updates from 3S Money

© 3S Money Club Limited 2019-2024. All rights reserved. 3S Money and 3s.money are trading names of 3S Money Club Limited. 3S Money Club Limited is authorised by the Financial Conduct Authority under the Electronic Money Regulations 2011 for issuing of electronic money and the provision of payment services with FCA registration number 900918. 3S Money Club Limited is registered in England and Wales, Company Number 8574246, with its registered office address at 45 Folgate Street, London, E1 6GL, United Kingdom. 3S Money Club Limited is registered with The United Kingdom Information Commissioner's Office with ICO registration number ZA495485. 3S Money Club Limited (DIFC Branch) is regulated by the Dubai Financial Services Authority (DFSA) with DFSA reference number F007004, authorising it under Article 48 of the Regulatory Law 2004 to carry on the Financial Services comprised in Issuing Payment Instruments and Providing or Operating a Payment Account. 3S Money Club Limited (DIFC Branch) is registered in Dubai International Financial Centre, Licence Number CL5587, with its registered office address at Central Park Towers, office 20-54, DIFC, Dubai, UAE. 3S Money (Luxembourg) S.A. is authorised by the Commission de Surveillance du Secteur Financier (CSSF) under the law of 10 November 2009 on payment services for issuing, distribution and refund of electronic money with CSSF registration number W00000016. 3S Money (Luxembourg) S.A. is registered in Luxembourg, R.C.S number B245715, with its registered office address at 25C, Boulevard Royal, L- 2449, Luxembourg, Grand Duchy of Luxembourg