Wolfsberg Group Releases Part II on Suspicious Activity Monitoring

The statement builds on the group’s guidance from July 2024 guidance and outlines how financial institutions (FIs) can evolve their monitoring programmes to better detect and report financial crime.

Key aspects outlined in the guidance include;

➡️ Transition and validation: FIs should redefine success criteria for monitoring programmes, focusing on quality outcomes and integrating new capabilities such as data analytics and investigator-ready summaries;

➡️ Risk-balanced models: FIs are urged to tailor model risk governance to reflect the unique nature of financial crime models, enabling faster deployment of innovative solutions; and

➡️ Explainability: Transparency in model design, risk coverage, and usage is essential to ensure trust and effective oversight.

✅Firms should review their monitoring programmes and associated management information (MI), ensuring high-quality outcomes are being driven with appropriate governance and oversight in place.

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