Financial monitoring is essential for transparent and ethical financial transactions, as well as minimising financial risks. However, effective financial monitoring depends on a range of legal determinants, including regulatory frameworks, legal systems, organisational structures, and technology regulations. Regulatory frameworks provide rules and guidelines that organizations must adhere to, while the legal system enforces contracts, resolves disputes, and protects the rights of individuals and organisations. A well-designed organisational structure and technology regulations can also facilitate effective financial monitoring. A robust legal system promotes investor confidence, enables efficient dispute resolution, and reduces the cost of financial monitoring. In contrast, a weak legal system can undermine effective financial monitoring, promoting fraudulent behaviour and hindering access to capital markets. To ensure effective financial monitoring, organisations must comply with relevant regulations and legal frameworks to minimise financial risks and build investor confidence.