Suspicious Activity Monitoring; An Innovative and Auditable Approach to Threshold Tuning

Scot Luther, CAMS-Audit

This whitepaper provides a high-level overview of a suspicious activity monitoring system and the necessity of threshold tuning as a critical component to the typology validation. Most importantly, the whitepaper will introduce a conceptual implementation of a software solution that provides financial institutions and suspicious activity monitoring system managers automated, data-driven predictive indicators and alerts that a threshold should be reviewed and possibly tuned. The solution would be integrated to the suspicious activity monitoring system in place. It would also be running in real-time to provide alerts that could justify the obsolescence of an annual periodic threshold tuning exercise. The predictive indicators would also include data snapshot captures that financially rationalize threshold tuning exercises from a business perspective, all while providing an auditor concrete justification for a threshold tuning exercise.

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