BSA Model Validation – Are You Talking To Me? Webinar
Most Compliance and BSA personnel deal with laws and regulations, rather than algorithms and quantitative analysis, and struggle with the concept of how to properly ensure the model is producing intended results – and whether to file a SAR or not. This webinar will provide a level of knowledge that key bank personnel can use to oversee the validation process and ensure your bank meets regulatory and audit expectations.
Webinar Description and Audience
WHAT? Prior to 2011, there was no mention of the adequacy or deficiency of a BSA Model Validation in any examination report, audit report or enforcement action. That year, the OCC and Federal Reserve issued guidance called “Supervisory Guidance on Model Risk Management,” and it has become ear-splittingly clear over the last five years that all banks, regardless of size or regulator, which use an automated transaction monitoring system, are expected to undergo an independent, periodic validation of their monitoring system to ensure it’s not “garbage in, garbage out.”
Banks now turn this validation task over to third parties without fully understanding what is expected by regulators and auditors, or how to properly scope and oversee the validation process.
WHY? Your bank needs to show your auditors and regulatory agencies that your transaction monitoring software accurately and comprehensively aggregates and monitors transactions of your customers, and performs as intended in detecting suspicious activity, as well as adequately risk rating, both at account opening and on an ongoing basis, the risks associated with the customer relationship and also at the account level.
There were numerous BSA enforcement actions in 2016, and a common theme was the deficiencies, or omissions, concerning banks’ model validation processes and the knowledge base of those responsible for overseeing such systems.
Most Compliance and BSA personnel deal with laws and regulations, rather than algorithms and quantitative analysis, and struggle with the concept of how to properly ensure the model is producing intended results – and whether to file a SAR or not.
This webinar will provide a level of knowledge that key bank personnel can use to oversee the validation process and ensure your bank meets regulatory and audit expectations.
•Data validation vs model validation and how they interact
•Accuracy in risk rating/ranking of relationships and accounts
•Validation engagement letter, scope, work-papers and final report
•Independence considerations for in house model validations
•Background and experience of internal or external personnel conducting validation
•Ensuring that data collected and loaded into the monitoring software is accurate and comprehensive
•Core, host and other systems that feed into the data stream
•Corrective action follow-up to any identified deficiencies or gaps
•Model data input, processing and reporting methodology and expectations
•Impact upon SARs, CTRs, CDD and EDD
•System utilization for initial Customer Risk Profile and ongoing monitoring; and
•Differences in Rules Based vs Behavior Based parameters and efficiencies.
Who Should Attend?
Compliance, Deposit Operations, Branch Administration or other departments that are responsible for reviewing alerts generated by a bank’s transaction monitoring system. Attendees also include BSA Officers, auditors and members of management with BSA oversight responsibilities.
Webinar Viewing Options
INCLUDES 7 DAYS OF UNLIMITED ONDEMAND PLAYBACK! With this option, you will participate in the webinar (via the internet) as it is being presented. You will login to the webinar on your PC to view the PowerPoint presentation, and you have the option of using your PC speakers or a telephone for the audio. You can type and send your questions to the instructor. Many companies are now running their PC through an LCD projector allowing many employees to participate at the same time. And don’t worry if you miss the webinar, you can still view it for up to seven days after it takes place!
SIX MONTH ONDEMAND VIDEO:
With this option, you will receive an e-mail that contains a link to the PowerPoint slides (to download, print, and copy) as well as a link to the media player where you will view and hear the entire webinar just as it was delivered, featuring the full-color PowerPoint presentation with audio. You can pause, fast-forward and rewind as needed, which makes it a very effective training tool. The OnDemand Video will be available to you (and anyone else in the company) for six months and can be accessed 24/7 as many times as you wish. Delivered via e-mail the day after the webinar takes place.
If you do not have internet access or want to make the webinar part of your training library, the CD-ROM Recording is a great option for viewing a webinar. You can pause, fast-forward and rewind as needed, which makes it an effective training tool. With this option, you will receive a download of the PowerPoint slides and a CD-ROM Recording (featuring PowerPoint presentation with audio) of the webinar via regular mail. Mailed 7 to 10 days after the webinar takes place.
Webinars can be scheduled and offered exclusively for your company. They can even be customized to best fit your needs. To find out more, please complete the in-house request form found in the Schedule and Registration Information section below.
Continuing Education (CE) Credits
This webinar is recommended for 2.5 CE Credit Hours. Each attendee will receive a Certificate of Attendance for self-reporting of CE Credits.