This presentation was given on October 4, 2016 at the Toronto Marriott Downtown Eaton Centre Hotel at the 14th installment of Canada’s premier event in the field of money laundering compliance and control. The theme of Money Laundering in Canada 2016 is Financial Crime, Compliance, and Regulation: Keeping Pace with the Times.
6. AUDIT AND
CONTROLS
If, the above procedures are not implemented then it could
increase the risk for failures in the IT department which
increases the risk to Compliance (owner of the AML system).
Error handling
Database backups
Source code control
8. DATA
VOLUME
TRENDS
Volatility in the daily record count of crucial transaction files
could be a symptom of issues in the ETL process.
0
10000
20000
30000
40000
50000
60000
70000
80000
90000
100000
September 2016 Record Count
10. CLIENT
ONBOARDING
STANDARDIZATION
If, new client data is captured without strict standards then the
quality of results in the AML and/ or fraud system will degrade.
i.e. Address validation and account takeover incidents.
Names
Addresses
Phone numbers
Tax identification
11. MODEL
PERFORMANCE
Distinct account / alert ratio
STR ratio
High risk entity attributes
Group segmentation
Thresholds and scoring
Creating metrics to evaluate a model’s performance over
time is a way to identify trends and improvements for
optimization.
12. IN
SUMMARY
Is employee attrition a risk because of lack of
documentation ?
Are you monitoring for data quality red flags
on a daily basis?
Is your AML dashboard helping to identify
trends at the enterprise level?
