AML Transaction Monitoring for a Global Bank

  • 95%

    reducation in false positives

  • 20%

    time savings

  • $1m

    operational cost savings

  • 100%

    timelines achieved


CLIENT CHALLENGES
  • A large global bank wanted Acuity Knowledge Partners to help reduce false positives for its AML activities, including
  • Streamlining its transaction monitoring activities, validating and developing new customer segmentation logic
  • Developing and validating new and existing scenarios to generate alerts and fine-tuning scenarios for efficiency and higher speed,
  • Determining a methodology to set initial thresholds and tuning them to specific scenarios
OUR APPROACH
  • Segmentation
    • Applied data analysis techniques to determine the number and type of customer segmentations
    • Analysed attributes associated with the customer to cluster them
    • Validated the existing segmentation model for different portfolios
  • Threshold tuning
    • Derived and validated existing thresholds of tuneable parameters to reduce false positives and ensure that scenario requirements are met
    • Determined the transaction population for each scenario to fine-tune thresholds
  • Scenario development and validation
    • Developed new scenarios and fine-tuned existing scenarios for better performance
    • Validated scenarios to confirm the requirement(s) and ensure that alert specifications are met
IMPACT DELIVERED
  • Met the timelines provided by regulators
  • Identified redundant scenarios and reduced false positives by 95% by tuning the thresholds
  • Improved customer segmentation by validating the existing model and modifying based on the requirement
  • Deployed a team of statisticians, AML SMEs, and technology experts to implement a robust transaction monitoring process
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What we have done

Actimize Trade Surveillance Support for US-based Bank
What we are proud of

>50%

savings in staffing costs

25%

increase in outreach