TRANSACTION MONITORING VALIDATOR (TMV)

'Transaction Monitoring Validator’ is a new solution enabling financial institutions to test and validate the efficacy of their transaction monitoring models, to ensure ongoing DFS compliance.

COMPLYING WITH DFS REGULATIONS

  • AML Analytics recognises that there is a need for financial institutions around the world to ensure transaction monitoring and filtering programme compliance, given the additional and developing regulatory focus.
  • TMV supports our other tools, AML Analyser and Sandbox which allow institutions to test their filtering system(s) for both customer screening as well as transactional screening filters. Our monthly Benchmark ensures institutions can compare themselves to peers in the industry to gauge performance based on risk appetite.
  • TMV customers can also benefit from our own professional consultants to assist with system tuning or reconfiguration, should it be required.

HOW DOES TMV WORK?

  • Testing and Validating model performance without any IT Integration.
  • TMV will mimic the scenario sets employed by each financial institution.
  • AML Analytics remains technology agnostic; we will perform this function regardless of the model in use.
  • Provides completely independent third party validation.

THE BENEFITS

  • Addresses increased scrutiny on Model Validation by regulatory bodies.
  • Assists with pre-and post-implementation testing as prescribed by the newly imposed DFS Regulations as well as meeting global regulators expectations.
  • Provides financial institutions with the ability to predict the output of any scenario before it is deployed and/or tuned.
  • Has the ability to perform multiple test sets in a repeatable fashion.
  • Aides in tuning of specific scenarios to create higher yields for alerts, saving time, money and human resources.
  • Uncovers potential data or logic issues that may not have been known prior to testing
  • Provides seasoned experts to assist in a consultative role to help drive the project to success.
  • Provides test contexts that include false positive analysis as well as false negative analysis.
  • Robust reporting capabilities that will satisfy senior management/board all the way to detailed reporting for analysts.
  • Workshops will be provided to update stakeholders on results and suggested next steps.

WHY USE TMV?

  • To ensure you truly understand your risk.
  • To prove to the regulatory bodies that your model is working as designed.
  • To reduce your operational overheads.
  • To ensure compliance with regulatory requirements.
  • To improve accuracy
 

BACKGROUND

In recent years on-going testing and model validation Compliance has seen increased focus and scrutiny from global regulators. In June 2016 the New York Department of Financial Services (DFS) highlighted shortcomings in the transaction monitoring and filtering programmes within financial institutions. They have identified a lack of robust governance, oversight and accountability at senior levels. This has led to the belief that institutions have shortcomings in their transaction monitoring and filtering programmes.

  • To Counteract these shortcomings, the DFS has adopted a risk-based anti-terrorism and anti-money laundering regulation that requires regulated institutions to maintain programmes to monitor and filter transactions for potential Bank Secrecy Act (BSA) and anti-money laundering (AML) violations and prevent transactions with sanctioned entities.
  • The Regulation requires supervised institutions annually to submit a Board resolution or senior officer compliance finding confirming steps taken to ascertain compliance with the regulation.

WHAT IS REQUIRED?

The DFS Regulations require financial institutions to Maintain a Transaction Monitoring and Sanctions Filtering Programme. Both Transaction Monitoring and Sanctions Filtering system(s) must be reviewed and periodically updated at risk-based intervals to take into account and reflect changes to applicable BSA/AML laws, regulations and regulatory warnings, as well as any other information determined by the institution to be relevant from the institution’s related programmes and initiatives;

  • End-to-end, pre-and post-implementation testing of the Transaction Monitoring Programme, including, as relevant, a review of governance, data mapping, transaction coding, detection scenario logic, model validation, data input and programme output
  • Vendor selection process if a third party vendor is used to acquire, install, implement, or test the Transaction Monitoring and Filtering Program or any aspect of it.
ADDITIONAL FEATURES
GLOBAL BENCHMARK GLOBAL BENCHMARK

GLOBAL BENCHMARK

We provide unique and customised data extracts of PEP and sanctions lists which are run against the financial institution’s client screening and payment filtering systems for analysis.

SANDBOX SANDBOX

SANDBOX

'Sandbox' is an online, web based solution which allows you to create your own bespoke sanctions testing programmes, configurable to suit your individual risk appetite.

SANCTIONS ALERT SERVICE SANCTIONS ALERT SERVICE

SANCTIONS ALERT SERVICE

When you subscribe to AML - SAS, we will notify you via email or Twitter, 24 hours a day, globally, whenever new individuals and entities are added, removed or changes are made to sanctions lists around the world.