NB risk partners releases AML rule parameters Waterfall Model

The new NB Risk AML Rule Parameters Waterfall Model is the first installment in a series on Anti-Money Laundering systems.

Whenever NB Risk comes in to help financial institutions get a handle on their rules and parameters, our experts start with what we call an AML Rule Parameters Waterfall Model Analysis (named for its sequential flow). We identify all rules of significance (e.g., rules that generate more than X number of alerts per year), then we track all alerts for a given period of time through six stages.

Stage 1, which is often overlooked, is to verify that the transaction information fed into the AML system is accurate and complete.

To help financial institutions visualize this process, we have developed here at NB Risk the AML Rule Parameters Waterfall Model. It shows how each rule parameter can be tracked from its arrival in the AML system through each stage of the alert process. Knowing the number of alerts that end up at each stage of the process for all of your significant rule parameters is the first step in putting your financial institution far ahead of the AML curve.