An organization uses an automated surveillance system that generates a very large volume of anti-money laundering alerts. The monthly volume of alerts has increased over the last year causing the…

Question

Options

• ACompare settings to organizations within its peer group
• BFlag filters with no history of generating an alert for removal
• CReview parameter settings based on the latest risk assessment
• DCalibrate parameters based on staffing capabilities to clear alerts

• A
  6% (1)
• B
  11% (2)
• C
  78% (14)
• D
  6% (1)

Explanation

Reviewing parameter settings based on the latest risk assessment should be included in the evaluation of system settings for anti-money laundering alert surveillance. This is because parameter settings determine the thresholds and criteria for generating alerts based on the risk profile of the customers, products, services, channels, and jurisdictions involved in the transactions. A risk assessment is a periodic and comprehensive analysis of the potential money laundering and terrorist financing risks faced by an organization, and it should inform the design and implementation of an effective anti-money laundering program, including the alert surveillance system. By aligning the parameter settings with the risk assessment, an organization can ensure that the system is capturing the most relevant and high-risk transactions, and reducing the number of false positives or irrelevant alerts.

No community discussion yet for this question.