CONDUCTING A TUNING AND FALSE POSITIVE EXERCISE ON AN ANTI-MONEY LAUNDERING SYSTEM

 

The purposes of conducting a software tuning exercise might be to balance the case analyst workload on a transaction monitoring system or to make adjustments based on your customers, products or services, or the geography in which you serve has changed. While both of those are true, improperly setting up the software can also affect your alert/case volume, and simply may be inaccurate based on your risk assessment and program requirements.

We often find while conducting model validations at financial institutions, credit unions, or other non-bank financial institutions they have implemented a system without fully identifying what are the requirements of that system. In these cases, clients are at risk because they are truly receiving too much making them terribly inefficient on wasted alerts or they aren’t getting the most important ones because the system is missing that rule/threshold.

We believe that tuning your software is a critical part of staying compliant and an institution often benefits from a review every one or two years. Often times, clients assume that since they haven’t changed anything dramatic in their risk appetite, and while that may be true, it doesn’t factor in the environment around them is changing, and thereby their customers are spending differently or transacting differently. We have assisted a number of our clients with assessing their rules/profiles and proving statistically what they should be hitting on each month. Our methodology incorporates a mathematical approach to determining the proper thresholds for your institution with a scientific report demonstrating our findings.

 

 

 

 

 

 

Key benefits of our software tuning exercise include:

 

  • Risk mitigation
  • Increased quality of alerts
  • Potentially reduced workload
  • More effective monitoring and filtering

Learn more information about this service here