AML Monitoring System Validation Services
An effective anti-money laundering (AML) monitoring system is the foundation of your financial institution’s Bank Secrecy Act program. That’s why the FFIEC’s guidelines indicate that “the monitoring system’s programming methodology and effectiveness should be independently validated to ensure that the models are detecting potentially suspicious activity.”
What’s more, if your automated system is missing or incorrectly flagging unusual activity, then every subsequent component of your BSA program is suspect. This can result in:
- Too many false positives, straining investigative resources
- Increased scrutiny from regulators, who may then presume that other aspects of your BSA program are suspect as well
- Enforcement actions with money penalties likely
- Costly regulator-mandated look-back projects to identify and investigate missed transactions
- Increased scrutiny in subsequent regulatory examinations
- Negative press, both in trade publication as well as mainstream media, resulting in reputational damage
That’s why simply turning your AML system on, without an independent validation and periodic follow-ups, is a high-risk gamble that no financial institution should make.
How AdvisX Can Help
Our team of BSA experts draws upon years of experience working with financial institutions throughout the country using all types of AML systems to put your BSA program on solid footing. We know where the pitfalls are. We coordinate closely with you to minimize disruption to your team as well as the costs through each phase of the process. What’s more, AdvisX knows how to make the process as painless and cost-effective as possible. We conduct it completely off-site, saving you money and time.
With AdvisX on your team, you’ll find:
- Expertise combined with our patented technology platform resulting in fees that are 40% below those charged by traditional providers
- A team with the expertise to know the kinds of things that can derail an AML system validation and make it unnecessarily time-consuming and expensive
- The opportunity to work directly with a team that national and regional firms contract with to conduct AML validation projects for their clients, saving you money
- A 100% satisfaction rate from our client base
Phase I: Discovery
During the discovery phase, we work closely with your team and your supporting documents to gain an understanding of your institution and the AML system you have in place. We work to know your risk factors and how the AML system operates with those risks in the normal course of operations.
Phase II: Proving the System
During this phase, we seek to prove that the system as currently designed is functioning in an accurate and timely manner. We focus on both the accuracy of the data flowing from institution’s core system into the AML system as well as testing the output from the AML system back to the associated accounts and transactions within the core system.
Phase III: Risk Alignment
Here we assess whether the current processes, templates, prescribed thresholds, and/or corresponding profile adjustments are in line with your financial institution’s BSA/AML risk appetite. This phase, while optional, can help your institution reduce its BSA workloads, anxieties and costs.
Complete the following form to request an AdvisX Anti-Money Laundering System Validation proposal and service sheet.
AdvisX’s AML validation services are designed to reduce your BSA workloads, anxieties and costs. Let us prepare a proposal at a price that makes sense for your financial institution.