Which of the following are key metrics that provide valuable data to senior management about the effectiveness of an FI's AML controls?

The correct answer is D. The ratio of true positives to false positives generated by the automated monitoring system. AML controls should be measured for effectiveness using quantifiable metrics. Option D (Correct): The true positive/false positive ratio assesses the efficiency of AML detection.

AML/CFT Compliance Programs

Question

Options

AThe number of money laundering alerts generated by the watchlist screening system.
BThe number of clients exited for commercial reasons.
CThe number of high-risk customers onboarded each month.
DThe ratio of true positives to false positives generated by the automated monitoring system.

How the community answered

(46 responses)

A
2% (1)
B
9% (4)
C
7% (3)
D
83% (38)

Explanation

AML controls should be measured for effectiveness using quantifiable metrics. Option D (Correct): The true positive/false positive ratio assesses the efficiency of AML detection.

Topics

#AML metrics#transaction monitoring#true positives#false positives

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