BSA/AML Transaction Validation

Regulatory complexity and high costs associated with BSA/AML transaction monitoring encourage institutions to improve the effectiveness and efficiency of their automated AML transaction monitoring systems. When properly configured, these systems are designed to help institutions detect and alert on patterns of activity that may indicate money-laundering or terrorist-financing activities. An improperly configured monitoring system may result in:

  • BSA/AML Staff burdened by unwarranted Alerts
  • Money Laundering Transactions going undetected

Committing to adjusting your AML system detection scenarios may be a good start to improving the system’s effectiveness, but modifying parameters before first tackling AML data quality can be a costly mistake. By the time the data is discovered to be inaccurate or incomplete, monitoring changes may have already been implemented, leading to costly rework and the potential for a regulator-mandated transaction “lookback”.

“The quality of data clearly affects the quality of the alerts generated by a transaction monitoring system.”

Increasingly financial institutions are engaging independent 3rd party BSA/AML specialists to assess the effectiveness of their installed BSA/AML Monitoring systems. GRC Solutions can perform such an assessment to determine if transactions from the Bank’s Transaction Processing systems are known, understood, mapped, and flow properly to the BSA/AML Monitoring System, and Alerts are generated as configured by the Bank.