Transaction Monitoring and Reconciliation SOP

This detailed SOP provides financial analysts, compliance officers, and project managers with a structured framework for managing Transaction Monitoring and Reconciliation within an organisation. It includes:
– Step-by-Step Process Flow: Outlines essential subprocesses such as Transaction Monitoring, Reconciliation Process, Fraud Detection, and Review and Improvement, with clear actions, decision points, and feedback mechanisms to ensure the accurate processing, reconciliation, and monitoring of transactions.
– Risk Management: Identifies key risks such as inaccurate transaction data, undetected fraudulent transactions, and unresolved discrepancies, with mitigation strategies including robust verification procedures, advanced analytical tools for fraud detection, and regular reconciliation schedules to ensure operational integrity.
– Compliance and Regulatory Requirements: Ensures adherence to relevant regulations such as GDPR and financial compliance standards, with built-in compliance checks during transaction processing and reconciliation to ensure legal adherence.
– Key Performance Indicators (KPIs) and Controls: Defines KPIs such as transaction verification accuracy, fraud detection rate, and reconciliation timeliness, with controls including automated monitoring tools, regular compliance audits, and stakeholder communication protocols to ensure continuous process improvement and operational efficiency.
– RACI Framework: Clearly defines roles and responsibilities for each task in the transaction monitoring and reconciliation process, ensuring that project managers, financial analysts, compliance officers, and end users are accountable and engaged at every stage, promoting a transparent and collaborative approach.
– Systems Requirements: Details the necessary systems such as a Transaction Management System (TMS), Data Analytics Tools, Automated Reconciliation Tools, and Feedback Collection Tools, to support the transaction monitoring and reconciliation processes, ensuring efficient and secure management.
– Appendices: Provides practical resources such as checklists, template emails, reconciliation process terms of reference, and real-life case studies to guide users through each stage of transaction monitoring and reconciliation effectively.