Which key metric would provide the most valuable data to senior management about the effectiveness of its AML controls?

The correct answer is D. The ratio of true positives to false positives generated by the automated monitoring system. An effective AML program balances alert accuracy and operational efficiency. Option D (Correct): The true positive vs. false positive ratio reflects the efficiency and accuracy of an AML transaction monitoring system.

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

(25 responses)

A
16% (4)
B
8% (2)
C
4% (1)
D
72% (18)

Explanation

An effective AML program balances alert accuracy and operational efficiency. Option D (Correct): The true positive vs. false positive ratio reflects the efficiency and accuracy of an AML transaction monitoring system.

Topics

#KPIs#transaction monitoring effectiveness#true positives#false positives

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