Project Overview

A Tier-1 Bank was under regulatory pressure to assess and fix the gaps in its existing AML monitoring system. The bank initiated an AML optimization program focusing on:

1. Identifying gaps in the data required for AML monitoring
2. Performing scenario risk coverage
3. Tuning of scenario thresholds across all business lines

Project Solution

The project was executed in two phases.

1. Advisory – During the assessment phase, our team of AML SMEs and Data Analysts worked closely with the client’s team and helped to draft a risk-based methodology for tuning of AML models.
2. Implementation – Tuning the scenarios (per the risk-based approach defined in the methodology document) and threshold optimization was implemented in the production phase.

Results

• Prior experience in model optimization and tuning has helped the team to replicate the scenario logic in a timely manner and to perform banding & ATL / BTL testing effectively, saving the client time and money.
• In addition to tuning of scenarios, Matrix-IFS was able to provide support for the new monitoring system implementation as needed.