What We Heard at SIFMA’s 20th AML & Financial Crimes Conference

Exiger’s Tara Loftus, Julie Curto and Claire Pige joined top securities industry compliance professionals, regulators and law enforcement agents at SIFMA’s 20th Annual AML & Financial Crimes Conference to discuss the latest developments and priorities in the AML and financial crime space. Our key takeaways from this two-day, multi-panel event? Here’s what you need to know:Machine Learning is changing the way suspicious activity is monitored, and US regulators are on board with financial services firms adopting private sector technological innovations. (See the 2018 US multi-agency guidance “Joint Statement on Innovative Efforts to Combat Money Laundering and Terrorist Financing”. Want more? Read Exiger’s article “Replacing the Engine While Riding the Plane” ) Regulators can’t be everywhere and rely on the second and third lines to engage in an ongoing, active dialogue with the business. Securities industry compliance and audit professionals needs to talk to traders and desk heads regularly to understand new and emerging risks and help the business manage them proactively. All compliance-related models are not created equal. Since there are variations in what is being modeled and the resulting models, regulators expect to see variations in model validation approaches and techniques. (See Federal Reserve (SR 11-7) and OCC (OCC Bulletin 2011-12) guidance on model validation methodology and regulatory expectations) Regulators continue to focus on comprehensiveness and fitness-for-purpose of both AML program design and AML program independent testing. The scope, scale and resource allocation for AML program independent testing need to be commensurate with identified business risks.Didn’t get a chance to connect at the conference? Reach out to our compliance experts to learn how Exiger’s people and technology solutions can help your organization accelerate and action business decisions with confidence.