The right vendor is not just selling software, they are safeguarding your institution’s future.

In the Philippines, the pressure to fight financial crime is mounting. The exit from the FATF grey list in 2024 signaled progress, but also raised expectations for financial institutions. Banks, fintechs, and remittance companies are now required to show that they can identify suspicious activity quickly and accurately. At the heart of this challenge is transaction monitoring software. And choosing the right vendor is as important as the technology itself.

Why Transaction Monitoring Matters More Than Ever

Transaction monitoring enables financial institutions to detect unusual or suspicious activity in real time or through batch analysis. It flags patterns such as structuring, round-tripping, or high-risk cross-border flows that may signal money laundering or fraud.

In the Philippines, several factors make monitoring critical:

• Large remittance inflows vulnerable to structuring and layering.
• High fintech adoption with e-wallets and digital banks processing instant payments.
• Cross-border risks as syndicates exploit correspondent banking channels.
• Heightened regulatory oversight from the BSP and AMLC.

For institutions, the right transaction monitoring system can be the difference between meeting compliance standards and facing regulatory penalties.

The Role of Transaction Monitoring Software Vendors

Software alone is not enough. Vendors provide the platforms, expertise, and ongoing support that make monitoring effective. A vendor is not just a provider, they are a partner in compliance. Their responsibilities include:

• Developing adaptive monitoring technology.
• Ensuring local regulatory alignment.
• Offering integration with core banking systems.
• Providing training and customer support.
• Continuously updating typologies and detection rules.

The choice of vendor directly impacts both compliance outcomes and operational efficiency.

What to Look For in Transaction Monitoring Software Vendors

When evaluating vendors in the Philippines, institutions should consider several factors:

1. Regulatory Alignment

Vendors must demonstrate familiarity with BSP and AMLC requirements, including STR filing standards, risk-based monitoring, and audit readiness.

2. Technology and Innovation

Modern systems should offer AI-driven monitoring, machine learning for anomaly detection, and explainability to satisfy regulators.

3. Local and Regional Expertise

Vendors should understand the Philippine market as well as regional risks such as cross-border laundering and remittance abuse.

4. Integration Capabilities

Seamless integration with legacy banking infrastructure is essential to ensure a single view of customer activity.

5. Scalability

Solutions should support institutions of different sizes, from rural banks to major commercial players.

6. Customer Support and Training

Strong after-sales support ensures that compliance teams can use the software effectively.

7. Collaborative Intelligence

The ability to share typologies and scenarios across banks without compromising data privacy enhances overall industry defences.

How Vendors Help Address Philippine Money Laundering Typologies

Top vendors ensure their systems detect common schemes in the Philippines:

• Remittance Structuring detected through repeated small-value transfers.
• Shell Companies exposed via unusual business-to-business transactions.
• Casino Laundering flagged through inconsistent deposit and withdrawal patterns.
• Trade-Based Laundering identified through mismatched invoices and payments.
• Terror Financing uncovered through frequent low-value transfers to high-risk geographies.

Challenges in Choosing Transaction Monitoring Vendors

Selecting the right vendor is not straightforward. Institutions face obstacles such as:

• Vendor Lock-In: Some vendors limit flexibility by tying institutions to proprietary technology.
• High Implementation Costs: Advanced solutions can strain budgets of smaller institutions.
• Complex Integration: Connecting to legacy core banking systems can delay deployment.
• Skill Gaps: Compliance teams may lack experience with sophisticated monitoring platforms.
• Evolving Threats: Vendors that fail to update systems regularly leave institutions exposed.

Best Practices for Selecting a Vendor

1. Conduct a Needs Assessment
   Identify specific risks, regulatory requirements, and resource constraints before shortlisting vendors.
2. Evaluate Proof of Concept (POC)
   Run test cases with vendors to see how their systems perform against real scenarios.
3. Prioritise Explainability
   Choose vendors that offer systems with clear reasoning behind flagged alerts.
4. Check Industry References
   Look for testimonials or case studies from other Philippine or ASEAN banks.
5. Focus on Partnership, Not Just Product
   A strong vendor offers training, updates, and support that extend beyond installation.

Global vs Local Vendors: Which Is Better?

Philippine institutions often face a choice between global and local vendors. Each has strengths:

• Global Vendors bring advanced AI, scalability, and a track record across markets. However, they may lack local context or flexibility.
• Local Vendors understand BSP and AMLC regulations and the Philippine market intimately, but may lack the resources or innovation speed of global players.

The best choice often depends on institution size, complexity, and risk appetite. Hybrid approaches, such as global technology with local implementation support, are increasingly popular.

The Tookitaki Advantage: A Vendor with a Difference

Tookitaki’s FinCense is more than just a transaction monitoring solution. It is built as a trust layer for financial institutions in the Philippines.

Why Tookitaki stands out among vendors:

• Agentic AI-Powered Detection that adapts to new laundering and fraud typologies.
• Federated Intelligence from the AFC Ecosystem, offering insights contributed by global compliance experts.
• False Positive Reduction through behavioural analytics and adaptive thresholds.
• Smart Disposition Engine that automates investigation summaries for STR filing.
• Explainable Outputs aligned with BSP and AMLC expectations.
• Proven Regional Experience with banks and fintechs across Asia-Pacific.

As a vendor, Tookitaki does not just deliver software. It partners with institutions to build resilient compliance frameworks that evolve with threats.

Conclusion: Choosing Vendors as Compliance Allies

In the Philippines, the stakes for compliance have never been higher. Choosing the right transaction monitoring software vendor is not just a procurement decision, it is a strategic move that defines an institution’s ability to fight financial crime.

The best vendors combine advanced technology with local expertise, strong support, and a collaborative mindset. They help banks move beyond compliance checklists to build trust, resilience, and growth.

Philippine institutions that partner with the right vendor today will not only meet regulatory requirements but also set the foundation for sustainable, secure, and customer-centric banking in the digital age.

The wrong AML solution slows you down. The right one protects your business, your customers, and your reputation.

In Singapore’s financial sector, compliance isn’t just about keeping regulators happy. It’s about staying one step ahead of increasingly sophisticated money launderers. With rising threats like cross-border mule networks, shell company abuse, and cyber-enabled fraud, banks and fintechs need anti money laundering solutions that go beyond static rules and outdated workflows.

This blog unpacks the key traits of effective AML solutions, explains what’s driving change in Singapore’s compliance landscape, and shows what forward-looking financial institutions are doing to future-proof their defences.

Why Singapore Needs Smarter Anti Money Laundering Solutions

Singapore’s global financial reputation makes it a target for illicit financial flows. In response, the Monetary Authority of Singapore (MAS) has tightened regulatory expectations and increased enforcement. From MAS Notice 626 for banks to the adoption of GoAML for suspicious transaction reporting, institutions are under more pressure than ever to detect, investigate, and report suspicious activity accurately and on time.

At the same time, financial crime is evolving faster than ever. Key risks include:

• Shell companies used to obscure beneficial ownership
• Structuring and layering of transactions across fintech rails
• Fraudulent job scams and investment platforms funneling money through mule accounts
• Trade-based money laundering involving under- and over-invoicing
• Deepfake-driven impersonation used to authorise fraudulent transfers

Without advanced tools to detect and manage these risks, traditional AML systems leave institutions exposed.

What an Anti Money Laundering Solution Is — and Isn’t

An AML solution is a suite of technologies that help financial institutions prevent, detect, investigate, and report activities related to money laundering and terrorist financing.

At its core, a robust AML solution should:

• Monitor transactions across all channels
• Screen customers against watchlists and risk indicators
• Help compliance teams manage and investigate alerts
• Generate regulatory reports in a timely and traceable way

However, many existing solutions fall short because they:

• Rely heavily on outdated rule-based systems
• Produce high volumes of false positives
• Lack adaptability to new money laundering typologies
• Provide poor integration between detection and investigation

In today’s environment, these limitations are no longer acceptable.

Key Features of Modern AML Solutions

To meet the demands of Singapore’s fast-moving regulatory and risk landscape, anti money laundering solutions must include the following capabilities:

1. Real-Time Transaction Monitoring

Monitoring must happen in real time to catch suspicious activity before funds disappear. The system should detect abnormal transaction volumes, unusual patterns, and structuring behaviours instantly.

2. AI and Machine Learning for Pattern Recognition

AI helps identify non-obvious threats by learning from historical data. It reduces false positives and uncovers new laundering tactics that static rules cannot detect.

3. Risk-Based Customer Profiling

An effective AML solution dynamically adjusts risk scores based on factors like customer occupation, geography, account behaviour, and external data sources. This supports a more targeted compliance effort.

4. Typology-Based Detection Models

Generic rules often miss the mark. Leading AML solutions apply typologies — real-world scenarios contributed by experts — to identify laundering schemes specific to the region.

In Singapore, relevant typologies may include:

• Layering through remittance platforms
• Shell company misuse in trade transactions
• Mule account activity linked to fraudulent apps

5. Watchlist Screening and Name Matching

Screening tools should support fuzzy matching, multilingual names, and both real-time and batch screening against:

• Global sanctions lists
• Politically exposed persons (PEPs)
• Adverse media
• Local lists, such as MAS and ACRA databases

6. Case Management and Workflow Automation

Once alerts are generated, case management tools help investigators document findings, assign tasks, track timelines, and close cases with clear audit trails. Workflow automation reduces manual errors and increases throughput.

7. Suspicious Transaction Reporting (STR) Integration

In Singapore, AML solutions should be able to format and submit STRs to GoAML. Look for solutions with:

• Auto-filled reports based on case data
• Role-based approval workflows
• Submission status tracking

8. Explainable AI and Audit Readiness

AI-driven platforms must produce human-readable justifications for alerts. This is essential for internal audits and MAS inspections. The ability to trace every decision made within the system builds trust and transparency.

9. Federated Intelligence Sharing

Leading platforms support collective learning. Tools like Tookitaki’s AFC Ecosystem allow banks to share typologies and red flags without revealing customer data. This improves fraud and AML detection across the industry.

10. Simulation and Threshold Tuning

Before deploying new rules, institutions should be able to simulate their impact and optimise thresholds based on real data. This helps reduce noise and improve efficiency.

What’s Holding Some AML Solutions Back

Many financial institutions in Singapore are still stuck with legacy systems. These platforms may be MAS-compliant on paper, but in practice, they create more friction than value.

Common limitations include:

• Too many false positives, which overwhelm analysts
• Inability to detect regional typologies
• No integration with external data sources
• Manual report generation processes
• Lack of scalability or adaptability for digital banking

These systems may meet minimum requirements, but they don’t support the level of agility, intelligence, or automation that modern compliance teams need.

The FinCense Advantage: A Purpose-Built AML Solution for Singapore

Tookitaki’s FinCense platform is built to address the specific challenges of financial institutions across Asia Pacific — especially Singapore.

Here’s how FinCense aligns with what truly matters:

1. Scenario-Based Detection Engine

FinCense includes over 200 real-world AML typologies sourced from the AFC Ecosystem. These are region-specific and constantly updated to reflect the latest laundering schemes.

2. Modular AI Agent Framework

Instead of one monolithic system, FinCense is powered by modular AI agents that specialise in detection, alert ranking, investigation, and reporting.

This structure enables rapid customisation, scale, and performance.

3. AI Copilot for Investigations

FinMate, FinCense’s intelligent investigation assistant, helps compliance officers:

• Summarise alert history
• Identify key risk indicators
• Generate STR-ready narratives
• Suggest next steps based on previous case outcomes

4. Federated Learning and Community Intelligence

Through integration with the AFC Ecosystem, FinCense empowers banks to stay ahead of criminal tactics without compromising on data privacy or compliance standards.

5. MAS Alignment and GoAML Support

FinCense is designed with local compliance needs in mind. From case tracking to STR filing, every function supports MAS audit readiness and regulatory alignment.

Institutions Seeing Real Results with FinCense

Banks and fintechs using FinCense report:

• Over 60 percent reduction in false positives
• Improved turnaround time for investigations
• Better team productivity and morale
• Higher STR acceptance rates
• Fewer compliance errors and audit flags

By investing in a smarter AML solution, they are not only keeping up with regulations — they are setting the standard for the industry.

Checklist: Is Your AML Solution Future-Ready?

Ask yourself:

• Can your system adapt to new laundering methods within days, not months?
• Are your alerts mapped to known typologies or just rule-based triggers?
• How many false positives are you investigating each week?
• Can your team file an STR in under 30 minutes?
• Do you benefit from regional AML intelligence?
• Is your investigation workflow automated and auditable?

If you are unsure about more than two of these, it’s time to evaluate your AML setup.

Conclusion: Smarter Solutions for a Safer Financial System

In Singapore’s compliance environment, doing the bare minimum is no longer good enough. Regulators, customers, and internal teams all expect more — faster alerts, better investigations, fewer errors, and greater transparency.

The right anti money laundering solution is more than a checkbox. It is a strategic enabler of risk resilience, trust, and growth.

Solutions like FinCense deliver on that promise with precision, adaptability, and intelligence. For institutions serious about strengthening their defences in 2025 and beyond, now is the time to rethink what AML should look like — and invest in a solution that’s ready for what’s next.

As scams surge across Australia, banks need advanced fraud screening tools to protect customers and meet AUSTRAC’s compliance standards.

Introduction

Fraud is one of the fastest-growing risks in Australia’s financial system. In 2024, Australians lost more than AUD 3 billion to scams, from phishing and romance fraud to business email compromise (BEC) and authorised push payment (APP) scams. For banks and fintechs, the stakes are high. Regulators like AUSTRAC expect strong defences, while customers demand seamless, secure experiences.

The solution lies in smarter fraud screening tools. These technologies detect suspicious activity in real time, prevent illicit transactions, and provide compliance teams with the insights needed to fight evolving threats. This blog explores the state of fraud screening in Australia, what the best tools look like, and how financial institutions can get ahead of criminals.

What Are Fraud Screening Tools?

Fraud screening tools are technologies used to identify, flag, and block suspicious transactions and activities. They sit at the frontline of fraud prevention, screening payments, logins, and account activity for potential red flags.

Typical components include:

• Transaction Screening: Checking payments for unusual activity.
• Identity Verification: Ensuring users are who they claim to be.
• Sanctions and Watchlist Checks: Screening against AUSTRAC and global lists.
• Behavioural Analytics: Analysing customer patterns for anomalies.
• Case Management Integration: Linking alerts to investigation workflows.

Why Fraud Screening Tools Are Critical in Australia

1. Real-Time Payments Pressure

The New Payments Platform (NPP) and PayTo mean funds move instantly. Screening tools must detect anomalies within milliseconds.

2. AUSTRAC Compliance

Under the AML/CTF Act 2006, institutions must monitor and report suspicious activity. Fraud screening tools ensure compliance with SMRs, TTRs, and IFTIs.

3. Scam Epidemic

APP scams, investment fraud, and phishing are draining customer savings. Screening tools are essential to catch them early.

4. Customer Trust

Effective fraud prevention builds loyalty. A single missed scam can destroy trust.

5. Operational Efficiency

Manual reviews are unsustainable. Screening tools reduce false positives and investigator workloads.

Key Fraud Risks in Australia

1. Authorised Push Payment (APP) Scams – Fraudsters trick victims into approving fraudulent transfers.
2. Account Takeover (ATO) – Criminals gain access to legitimate accounts through phishing or malware.
3. Mule Accounts – Fraud networks use individuals to launder illicit funds.
4. Business Email Compromise (BEC) – Scammers impersonate vendors or executives to divert payments.
5. Synthetic Identities – Fake accounts created with blended real and fraudulent data.
6. Cross-Border Laundering – Funds layered through international transfers to obscure origins.

Red Flags Detected by Fraud Screening Tools

• Transactions just below AUSTRAC reporting thresholds.
• Unusual login behaviour, such as device or location changes.
• Accounts showing rapid pass-through activity with low balances.
• Sudden spikes in transaction frequency inconsistent with customer history.
• Transfers to or from high-risk jurisdictions.
• Repeated disputes of transactions by customers.

Features of the Best Fraud Screening Tools

1. Real-Time Detection

Monitoring across NPP, PayTo, cards, and remittances must happen instantly.

2. AI and Machine Learning

Adaptive models that learn from evolving scam patterns.

3. Sanctions, PEP, and Adverse Media Integration

Comprehensive screening against local and global watchlists.

4. Behavioural Analytics

Detects anomalies in customer behaviour and device usage.

5. Integrated Case Management

Alerts should feed directly into investigation workflows.

6. Federated Intelligence

Leverages insights from industry-wide data without compromising privacy.

7. Regulatory Reporting Automation

Generates SMRs, TTRs, and IFTIs for AUSTRAC seamlessly.

Challenges in Using Fraud Screening Tools

• False Positives: Poorly tuned systems overwhelm compliance teams.
• Legacy Systems: Many institutions struggle with outdated infrastructure.
• Integration Gaps: Screening often sits in silos, disconnected from AML tools.
• High Costs: Smaller institutions face affordability challenges.
• Evolving Typologies: Fraudsters constantly adapt to bypass controls.

Case Example: Community-Owned Banks Taking the Lead

Community-owned banks like Regional Australia Bank and Beyond Bank have shown that advanced fraud screening tools are not just for the big players. By adopting AI-powered platforms, they have strengthened their defences, reduced false positives, and maintained compliance with AUSTRAC, all while keeping customer trust intact.

Spotlight: Tookitaki’s FinCense

FinCense, Tookitaki’s all-in-one compliance platform, provides advanced fraud screening capabilities for Australian institutions.

• Instant Detection: Screens transactions in real time across all payment rails.
• Agentic AI: Continuously adapts to new scam tactics.
• Federated Intelligence: Draws on industry-wide fraud typologies from the AFC Ecosystem.
• Integrated Case Management: Provides investigators with context-rich alerts and regulator-ready reporting.
• AUSTRAC Alignment: Automates reporting and ensures transparency.
• Cross-Channel Coverage: Covers banking, cards, wallets, and remittances.

With FinCense, institutions can transform fraud screening into a proactive, intelligence-driven safeguard.

Best Practices for Deploying Fraud Screening Tools

1. Prioritise Real-Time Monitoring: Match the speed of NPP and PayTo transactions.
2. Invest in Explainable AI: Ensure regulators can understand and trust model decisions.
3. Integrate Screening with AML: Connect fraud and AML functions for a unified view of risk.
4. Improve Data Quality: Clean, consistent customer data improves screening accuracy.
5. Train Teams Continuously: Equip investigators to adapt to new typologies.
6. Collaborate with Regulators and Peers: Share insights to strengthen industry-wide defences.

The Future of Fraud Screening in Australia

1. AI-Powered Investigations – Copilots like FinMate will automate much of the investigative process.
2. Deeper PayTo Coverage – Tools will need to evolve to detect PayTo-related scams.
3. Cross-Border Intelligence Sharing – Fraud networks operate globally, demanding collaboration.
4. Digital Identity Integration – Biometrics will become a key defence in onboarding and monitoring.
5. Frictionless Customer Protection – Solutions will focus on seamless security without disrupting user experience.

Conclusion

Fraud screening tools are no longer optional for Australian banks and fintechs. With scams accelerating and AUSTRAC raising expectations, institutions must adopt smarter, real-time tools that can keep up with the pace of modern fraud.

Community-owned banks like Regional Australia Bank and Beyond Bank show that effective screening is achievable even without Tier-1 budgets. Platforms like Tookitaki’s FinCense combine AI, federated intelligence, and case management to set a new benchmark in fraud prevention.

Pro tip: The best fraud screening tools do more than stop fraud. They build the trust that keeps customers loyal in an increasingly risky landscape.