1. BSA/AML Systems Optimization and Efficiency: Principles and Applications

BSA/AML Systems Optimization and Efficiency: Principles and Applications

BSA/AML Systems Optimization and Efficiency: Principles and Applications
Event ID: 17700
Not for Sale
Recording: 15113

Duration: 90 minutes, including question and answer period.
Presenter(s): Kenneth Agle, president, AdvisX
Price: $299.00, On-Demand includes full audio presentation, question and answer session, and presentation slides.
Who Should Attend? BSA officers, BSA personnel, compliance officers, internal auditors, risk officers, operations personnel


Making Sweet Music Out of BSA/AML Noise

The emergence of AML System as part of a financial institution's monitoring for money laundering has been a significant process over the past decade. Organizations have felt the pressure to find a system that would work through the complexities of transactional behavior and, where sufficiently sophisticated, against customer profile elements. These systems for all of their efforts to "learn" have often fallen short of the mark. The result has been the term "noise."

Noise in the context of money laundering surveillance is not a positive. Generated alerts from any AML system give rise to expectation including those from the regulatory agencies. While certain systems aim to prioritize those alerts, for many financial institutions, the noise levels remain excessive. The catch-22 of such noise is that an organization wants to ignore the "lower" volume noise elements while focusing on the "higher." Yet, the concern is that something of value may be identified within the softer tones of generated alerts. The effort to reduce noise often leads to efforts to abandon a system for another only to find that, while certain gains may have been achieve, there are often other losses. Finding the perfect AML system is challenging even when opting for a very expensive system. Such systems, while often capable of programming variables into the alert generating process, require constant expertise and often prove untenable for the long haul.

Lessons learned from AML system validation has taught a number of key lessons. One, that systems are only as good as the information fed within those systems. Two, that often the information fed to a system represent only a portion of what might be available to the organization. Three, that if an organization could find ways to identify patterns from past generated alerts that it might have capacity to use that same information for future generated alerts and thereby statistically support the removal of generated alerts and thereby cut down on noise levels.

This webinar is about the process of doing this very exercise of achieving an optimal system. It draws on the principles of how AML systems work and why there are limits within most systems. It then presents the elements needed to achieve sound noise reduction that includes a discussion on how and why case management is critical. From this point, the webinar will focus on the principle of Z Factor Analysis and how organizations often have proverbial data gold mines at their fingertips that when added to an AML System can prove powerful in noise reduction. The webinar isn't about choosing or abandoning any system, but rather about how organizations can implement a few key principles to achieve strong noise reduction that is statistically sound on an ongoing basis. This webinar is about putting key pieces that have often been bantered about and making sense of those pieces.

Please join Ken Agle, president of AdvisX, as he guides you through this vital webinar that will help you turn BSA/AML noise into actionable information vital for your BSA/AML compliance efforts. All BSA/AML personnel are encouraged to attend this instructive webinar aimed at providing core principles for achieving what has often proved to the most elusive element of BSA–efficiency.


Mr. Agle will cover the following elements:

  • What AML Systems are designed to achieve in general
  • Why AML Systems often fall short in efficiency resulting in excessive noise
  • What factors are needed for sound AML System Optimization and Efficiency
  • Why case management is one of the most important components of an AML System Efficiency
  • How the strength of alert reviews, case investigations and SAR decision making is a meaningful part of AML System Efficiency
  • Where potential data sources exist and how to make the most of the critical tool for any AML System, CDD/EDD
  • Where the pitfalls often are found in AML System Efficiency
  • How AML System Efficiency can lead to further noise reduction in Optimization.



Your conference leader for "BSA/AML Systems Optimization and Efficiency: Principles and Applications” is Kenneth Agle. As president of AdvisX, Mr. Agle brings over 29 years of financial institution experience covering numerous facets of financial institution operations. Mr. Agle specializes in strategic regulatory response and in developing and implementing both proactive and reactive tools and systems to preempt and resolve issues affecting today’s financial institution. Prior to his consulting experience, Mr. Agle had been a financial institution examiner with the FDIC. As a commissioned examiner, Mr. Agle was principally involved in numerous examinations, including safety and soundness, compliance, BSA, IT and trust.


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BankersWEB certificates of participation are available to everyone completing this webinar.