Case Study

Clients challenge: Leading financial institution

Creating and implementing a global Anti-Money Laundering (AML) risk score for liability clients

Harmonizing AML risk scoring standards across business units and regions

Analyzing and risk scoring tens of millions of liability accounts

A leading financial institution needs to develop a globally consistent Anti-Money Laundering (AML) risk model to comply with a consent order from a banking regulator. Time is of the essence not only because of a tight deadline imposed by the regulator but also because of the scale of the project: the solution needs to enable risk scoring for tens of millions of deposit account holders worldwide.

The financial institutions previous AML risk models have been built around business units and regions. Each business unit uses its own qualitative methodology with some regional variations woven in to apply a set of rules to the customer data. Coming up with a single global solution will be a challenge. Simply gathering stakeholders in a room and having them hash out their differences isnt likely to result in a consensus. The financial institution needs expert help to come up with a solution that would meet the requirements of the consent order within 13 short months. Failure to comply might result in fines, penalties, and other sanctions.

Question:

What data would you collect to solve the business problem? How would you analyze the data? How would you present the information to the client? What insights did you develop? What recommendations would you make?