Three quick wins for an analytics driven compliance testing function

September 2013
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Three quick wins for an analytics driven compliance testing function

At a glance

The current regulatory environment around Bank Secrecy Act / Anti–Money Laundering (BSA/AML) compliance and the evolving nature of money laundering risks mean financial institutions cannot simply rely on traditional compliance testing. It is imperative for today’s organizations to adopt a more analytical approach to BSA/AML compliance testing that demonstrates independent verification and adequate assessment of compliance-related risks.

The current regulatory environment around Bank Secrecy Act / Anti–Money Laundering (BSA/AML) compliance and the evolving nature of money laundering risks mean financial institutions cannot simply rely on traditional compliance testing. It is imperative for today’s organizations to adopt a more analytical approach to BSA/AML compliance testing that demonstrates independent verification and adequate assessment of compliance-related risks. Developing sound information-management practices, building analytical tools and techniques, and performing end-to-end forensic testing is becoming the de facto standard in today’s environment.

This paper will give provide insight into a “three lines of defense” (3LoD) model for risk management; AML scenario coverage assessment, input data validation for AML surveillance models, and issue reporting and analysis. The three quick wins discussed here can help organizations facilitate the move toward an analytics driven BSA/AML compliance testing function and help build early momentum for a long-term, sustainable strategy.