All AML models must follow the guidance of OCC Bulletin 2011-12 and the subsequent Interagency Statement on Model Risk Management for Bank Systems Supporting Bank Secrecy Act/Anti-Money Laundering Compliance (4/9/21), which outline the expectations for model risk management, especially the need for independent review and model validations.

Let Young & Associates assist you with our AML Validation and Review.

Customized for your institution and as required by the regulators, our AML validation and review addresses:

  • Conceptual Soundness. We focus on the design, methodology, and construction of the model. This includes analysis and review of the model documentation, assumptions and limitations, data quality and completeness, and implementation
  • Ongoing Monitoring. We make sure that the model is working efficiently and as intended to meet your institution’s business objectives and ensure that it is tailored to the institution’s Risk Assessment (AML Program Management). This includes model tuning and calibration, which is driven by several Key Performance Indicators (KPIs).
  • Outcomes Analysis. We examine the model’s output, including alerts generated from transaction monitoring, along with the supporting information used for investigation. Above-the-line and below-the-line testing is conducted to ensure that alerts are accurate and complete. Monitoring rules and parameters are also assessed.

Note: Young & Associates collaborates with many of the AML software providers throughout the validation and review to make the process as seamless to your institution as possible.

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