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HAby u/hannah37·14dQuestion

AML software red flags — how much 'noise' is normal?

Hey everyone, fairly new to the compliance side of things after spending years in operations. We're getting our first look at a new AML transaction monitoring system (vendor is fairly large, don't want to name names) and the number of alerts it's generating is… significant. We've got our thresholds set, tested with historical data, but the volume of 'red flags' on what look like pretty standard transactions is making me wonder if we're doing something wrong or if this level of initial noise is just par for the course with new systems. How much fine-tuning did you typically need on your first go-around, and how do you differentiate between legitimate issues the system is catching and just over-sensitivity that needs to be dialed back?

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KAu/kabir6·14d

Initial rollout of a new AML system always has a ton of false positives. You need to spend time tuning the rules and thresholds based on your actual customer base and transaction types. Don't expect it to be perfect out of the box.

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