AML Model Validation in Compliance with OCC 11-12: Supervisory Guidance on Model Risk Management

Author: Susan Devine, CPA, CAMS-Audit

Supervisory Guidance on Model Risk Management (OCC SR 11-7 establishes requirements for model validations. Model validations verify that models are performing as intended to meet the defined business objectives. The guidance states that model validations should be performed at least annually to help reduce the model risk. This white paper describes validation approaches and methodologies used to comply with the guidance with an emphasis on model validation.

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