AML/CFT Transaction Monitoring – Importance of Tuning Your AMS Model

Regulators expect compliance with the standards established in the model risk management guidance (MRMG) (Federal Reserve SR Letter 11-7, OCC Bulletin 2011-12; FDIC FIL 22-2017) as well as the April 9, 2021, Interagency Statement on Model Risk Management for Bank Systems Supporting Bank Secrecy Act/Anti-Money Laundering Compliance. This guidance relates to systems or models used by banks to assist in complying with the requirements of Bank Secrecy Act laws and regulations.

The following five components illustrate the importance of ongoing tuning as a critical component of the AML compliance program:

TCA – A Better Way!