Validation of AML Software

As with many new services being offered in today’s industry, validation of AML software has not been relatively standardized. The validation performed by the McAdams Group is a three pronged approach. The validation includes: review of data mapping, review of data used and data not yet mapped, review of custom made reports and their relativity to the bank’s customer and product base, default thresholds, variance/tolerance levels in comparison with statistical customer data, percentage/rate of false positives, and lastly we will review whether all areas of risk mitigated via reporting.