CASE STUDIES

Challenges

A provider of sanctions screening engines was interested in assessing how effective their screening engine was at identifying sanction list names and how the various system configuration setting options might affect screening effectiveness.

In short, the screening provider wanted to improve the performance of their screening engine and approached SQA for assistance.

 

Challenges

SQA Consulting was acting as part of a skilled person team that was conducting a Section 166 review on a firm on behalf of the Financial Conduct Authority.

The requirement notice from the FCA required the skilled person to review the effectiveness of various key financial crime controls, including Transaction Monitoring (TM).

The section 166 requirement notice required:

  •  An assessment of:
    • the overall effectiveness of the TM controls
    • the process for adding and reviewing rules to the TM system
    • investigation procedures for TM alerts
  • Recommendations for how the firm could improve effectiveness.

Challenges

A bank performs sanctions screening using some third-party software. Although the screening system appears to be working in that output is created, but the bank quite rightly wants to know if its system: addresses the bank’s risk, is effective, is efficient, is comparable to peer banking institutions.

The bank requires:

  • A benchmark comparison against its peers.
  • Operational effectiveness figures.
  • Operational efficiency figures.
  • A report showing what risk is not addressed by screening – residual risk.
  • A report on the screening that can be delivered to regulators.

Challenges

A bank performs sanctions screening using some third-party software. Although the screening system appears to be working in that output is created, but the bank quite rightly wants to know if its system: addresses the bank’s risk, is effective, is efficient, is comparable to peer banking institutions.

The bank requires:

  •  A benchmark comparison against its peers.
  • Operational effectiveness figures.
  • Operational efficiency figures.
  •  A report showing what risk is not addressed by screening – residual risk.
  •  A report on the screening that can be delivered to regulators.

Challenges

A financial institution is concerned that although it believes it Sanctions Screening system is in good working order, it is limited by the data that is being sent to it. Screening systems can manage to work around certain miss-spelling & different data formats, but they are limited in that capacity.

The bank requires:

  • An understanding of where it is within the industry regarding its legacy data.
  •  Which records need data remediation.
  • Which fields have formats that could cause screening to be non-optimal.

Challenges

  • Email workflow.
  • No single consistent source of data.
  • Data stored in many disparate enterprise systems.
  • Poor data quality.
  • Inconsistent & inaccurate analysis & outcome prediction.
  • Human-centric analysis & bias.
  • Loss of human capital.
  • Decision fatigue & delivery volatility.
  • Unnecessary management effort.

Key Requirements for SQA

  • Provision of Enterprise data normalisation & ETL engine
  • Provision of Full real-time visualisation & analytics capability for any data source
  • Provision of Natural language interface (voice and text)

Provision of Decision recommendation engine

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