The anti-money laundering (AML) environment continues to evolve as regulatory changes and an increased focus on quantitative models are driving the need for AML model risk management within financial institutions. Those factors, in addition to the potential for financial crimes to happen mean that now, more than ever, having a comprehensive model validation strategy in place is an important component in any Financial Institution’s overall AML program.
Key Learning Points:
- Discussion of AML hot topics:
- End-to-end AML data integrity assessments, challenges and Protiviti’s approach and tools
- Industry-leading practice in Customer Risk Ranking (CRR Model) methodology
- Increased regulatory scrutiny such as NYDFS – Part 504
- Artificial Intelligence/Machine Learning/Advanced Algorithm
- Understand the life cycle of a full AML Model Validation, including:
- Model governance review
- AML scenario coverage analysis
- AML scenario logic validation
- AML scenario threshold setting validation
- Model input assessment
- Model output review, ongoing monitoring and reporting
Jim Sha is an Associate Director in the Model Risk Practice of Protiviti’s Data Management and Advanced Analytics Solution. He has more than ten years of experience in financial services technology, specializing in Anti-Money Laundering systems and analytics. Jim also has extensive data analytics experience using and validating various AML monitoring platforms and has deep business and technology experience with large global financial institutions.
Avinash Voruganti is a Model Risk Senior Manager, responsible for risk consulting, including retail and wholesale credit risk model development and validation, CCAR, Basel II regulatory compliance. He has extensive experience in data analysis and credit risk modeling, including development and validation of PD and LGD models, application and behavior scorecards.
Greggy Samonte, also a Senior Manager in the Model Risk Practice, rejoined Protiviti in early 2017, after spending several years as an Analytics Consultant for Dun and Bradstreet Australia. He also spent several years as an analyst with PwC and GE Capital.