The Bank Secrecy Act and anti-money laundering system validation

As dependency on automated anti-money laundering (AML) monitoring systems is ever increasing, the need for strong AML system validation and calibration has never been more important. The Bank Secrecy Act (BSA) / Anti-Money Laundering programs are becoming increasingly reliant on automated models in detecting suspicious activity, measuring risk and supporting key business decisions.

"Less than half of banking institutions have validated their anti-money laundering models."

Over the past year, one of the most commonly cited areas of examiner criticism is about the concept of sound AML model risk management. Model validation has been a significant requirement of the regulators over the past couple years and the expectation of validation is increasing. Improving the efficiency of a BSA / AML system is an ongoing exercise and this webinar walks through the components of a model validation and the keys to effective AML model risk management.

Key takeaways

  • A high-level overview of the BSA
  • Model system validation best practices
  • Tuning and optimizing the AML model
  • Structuring an appropriate governance program

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For more information on this topic, or to learn how Baker Tilly banking specialists can help, contact our team.


47.1 percent of respondents answered “Yes, we are using a model and yes, we have been asked to have a validation completed” to a poll question during The Bank Secrecy Act and anti-money laundering system validation webinar.