Independent Model and System Validation

Model validations are expected by regulators.
Here are five tips to ensure that your model is consistent with regulatory expectations:

1. The model must be validated by an independent 3rd party if these components point to the AML system as a model:

  • information input component: delivers assumptions and data to the model;
  • processing component: translates inputs into estimates;
  • reporting component: translates estimates into useful business information;
  • governance component: documents the roles and responsibility of the model.

2. 3rd party must be qualified to conduct a full model validation. The 3rd party must not have any conflicts of interest with the model it is validating.

3. Understand the data: a data integrity review will ensure that all appropriate customers and transactions are flowing into an institution’s monitoring system.

4. Calibration testing of parameters should be part of a model validation: the evaluation of existing rules, parameters, and thresholds should be tested to ensure suspicious activity is being detected without having too many false positives.

5. Ensure the AML scenarios work as intended: this part of the model validation is to ensure that parameter algorithms work as designed.

Enforcio Platform

Risk Score over time - granular

Assessing not just a ‘snapshot’ of risk, but rather automatically scoring risk over time on a granular level with automatic notifications of potential changes.

Small scale users

Our highly scalable platform can scale to match organisations of all sizes and sophistication, from start-ups to large global organisations. Configurable to your way of working, your risk appetite and your internal control environment.

Automated Organograms generation

Automatic generation and updating of organograms that users can easily export PDFs of entity relations and associated companies and directors.

Third party database import

The Corporate Source Register allows any user to trigger searches with selected third-party providers, from within the product. This is a feature that allows you to review the results, choose the corporate or individual that you would like to import the data for, as well as all the related parties and key principles behind such corporate, at a click of a button.

Extensive bank of databases

The most extensive company information and corporate structures combined with sanctions and other adverse data that delivers new levels of certainty on your third parties, and the individuals behind them.

Report data export

You can generate comprehensive report in a variety of popular formats, including Word, Excel, PPT, and PDF and export them. Include visual elements such as graphs and risk heat maps.

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