AML Model Optimization & Tuning
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:
- Identifying gaps in the data required for AML monitoring
- Performing scenario risk coverage
- Tuning of scenario thresholds across all business lines
The project was executed in two phases.
- 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.
- Implementation – Tuning the scenarios (per the risk-based approach defined in the methodology document) and threshold optimization was implemented in the production phase.
- 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.
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