Training Objectives

The course will provide participants with a comprehensive understanding of the regulatory and technical aspects of transaction monitoring in EMIs and PIs and will equip them with practical skills and knowledge to ensure compliance, effectively monitor transactions, and mitigate financial risks within their organizations.

More specifically, by the end of the programme, participants will:

• Have a clear understanding of EMIs and PIs landscape, their roles, and the importance of transaction monitoring within them.
• Have addressed the Payment Service Directives (PSD2 and PSD3) and explored the anticipated changes and updates in PSD3, including their impact on EMIs and PIs.
• Understand the regulatory framework and the requirements set forth by the relevant authorities; topics include customer due diligence (CDD), anti-money laundering (AML) obligations, and know your customer (KYC) procedures.
• Explore the purpose of transaction monitoring, its key principles, and the best practices for implementing effective monitoring systems.
• Apprehend the Reporting and Obligations Requirements, Suspicious Activity Reporting (SAR), and the obligations of EMIs and PIs under the regulatory framework.
• Identify the technical infrastructure needed for transaction monitoring, including software solutions, data analytics, and artificial intelligence (AI) applications.
• Dive into different techniques and methodologies used in transaction monitoring, such as rule-based monitoring, anomaly detection, behavior profiling, and network analysis.
• Understand data sources, data quality, data preprocessing, and data analysis techniques to extract meaningful insights for effective transaction monitoring.
• Implement Transaction Monitoring Systems, including system integration, customization, and testing.
• Engage in practical case studies and learn the best practices to avoid failures and penalties.

Training Outline

Introduction to Electronic Money Institutions (EMIs) and Payment Institutions (PIs)

• Definition and differentiation between EMIs and PIs
• Overview of the role and functions of EMIs and PIs in the financial ecosystem
• Importance of transaction monitoring for EMIs/PIs

Regulatory Aspect

• Introduction to Regulatory Frameworks

– Overview of Payment Service Directives (PSDs) 2 and 3

– Electronic Money Regulation and the Payment Services Regulation

– Key regulatory requirements for EMIs and PIs

– Role of regulatory bodies and their jurisdiction

• AML/CFT Compliance for EMIs and PIs

– Overview of Anti-Money Laundering (AML) and Counter Financing of Terrorism (CFT) regulations

– AML/CFT obligations for EMIs and PIs

– Customer due diligence (CDD) and Know Your Customer (KYC) requirements

– Risk assessment and mitigation strategies

– Reporting suspicious activities and transaction monitoring

• Transaction Monitoring Guidelines

– Overview of transaction monitoring

– Designing effective transaction monitoring systems

– Identification of red flags and suspicious patterns

– Real-time monitoring

– Record-keeping and documentation requirements

• Reporting and Regulatory Communication

– Reporting obligations to regulatory bodies

– Effective communication with regulatory authorities

– Requirements for periodic reporting and audits

Technical Aspect

• Transaction Monitoring Tools and Technologies

– Overview of transaction monitoring software

– Data analytics and machine learning techniques

– Automation and artificial intelligence in transaction monitoring

– Integration with existing systems and data sources

• Data Collection and Analysis

– Data sources and data collection methods

– Data processing and data quality management

– Statistical analysis and anomaly detection

– Data visualization for monitoring and reporting purposes

• Case Studies

– Real-life examples of transaction monitoring in EMIs/PIs

– Analysis of suspicious transactions and patterns

– Investigation techniques and decision-making processes

– Lessons learned and best practices to handle failures and penalties

Global and European Statistics

• Global overview of the electronic money and payment services industry
• Key statistics on EMIs and PIs in Europe
• Trends and emerging challenges in transaction monitoring
• Comparative analysis of regulatory approaches across jurisdictions

Who Should Attend

The programme is ideal for:

• Compliance officers within EMIs/PIs who are responsible for ensuring that the institutions adhere to the regulatory requirements related to transaction monitoring.
• Risk Managers play a crucial role in identifying and mitigating risks associated with financial transactions.
• AML/CFT Officers who are responsible for implementing and maintaining robust AML/CFT measures within EMIs/PIs
• Operations Managers who oversee the day-to-day activities of EMIs/PIs, including transaction processing and monitoring

Training Style 

The course will explore practical case studies, simulating real-world scenarios and challenges faced by EMIs and PIs. These case studies will allow participants to apply their knowledge and skills gained during the course to practical situations, enhancing their understanding and problem-solving abilities.

The course will also present statistical data on transaction monitoring, including global trends and specific statistics related to EMIs and PIs in Europe. These statistics will provide participants with a broader context and a better understanding of the challenges and opportunities associated with transaction monitoring in the industry.

CPD Recognition

This programme may be approved for up to 7 CPD units in FinTech and Financial Regulation. Eligibility criteria and CPD Units are verified directly by your association, regulator or other bodies which you hold membership.

In-house Training

For groups within the same organisation, this course may be customized to meet any specific needs and delivered in-house.