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Whether the glass is half full or half empty, it's still ...€¦ · most stringent regulations, such as New York State's Department of Financial Services Part 504, ... -NYS DFS 504

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Page 1: Whether the glass is half full or half empty, it's still ...€¦ · most stringent regulations, such as New York State's Department of Financial Services Part 504, ... -NYS DFS 504
Page 2: Whether the glass is half full or half empty, it's still ...€¦ · most stringent regulations, such as New York State's Department of Financial Services Part 504, ... -NYS DFS 504

To validate your anti-money laundering (AML) program and system, you have to validate that both halves areworking. Often times we find our clients have used companies in the past that say they're validating the system, butthe catch there is that the system is only one half of the program. The most thorough and compliant model validationslooks at both your AML program, which includes your policies and procedures, and the system that supports it. As anAML industry leader, our AML model validation has always been and continues to meet the requirements of even themost stringent regulations, such as New York State's Department of Financial Services Part 504, and has passed throughmany successful examinations at our clients.

How are we different? We start with your AML risk assessment, which is the foundation of your program, so that we canfocus on the areas that are more risky to your business, and then we will dig into your policies and procedures so weknow exactly what you say your system is supposed to be doing in conjunction with your staff. Once we have anindependent and thorough understanding of your FI, we will test all of that against your system. Finally, we will producefor you a comprehensive report documenting all of our observations, findings, and recommendations in order for youto remediate as necessary on your own or with a partner.

Here are some of the systems we have validated: Actimize, Acuity, Amlock, BAM+, Bridger, eGIFTS, FCRM, Fircosoft,Norkom/Detica, Mantas, Patriot Officer, Prime Compliance Suite, SAS, Surety, Verafin, and Yellow Hammer.

Whether the glass is half full or half empty, it's still only half-way.Be sure your AML program and system are at 100%.

Page 3: Whether the glass is half full or half empty, it's still ...€¦ · most stringent regulations, such as New York State's Department of Financial Services Part 504, ... -NYS DFS 504

BSA SOFTWARE● Customers/ Accounts

● Transactions

● Profiling

● Rules/ scenarios

● Controls, errors/ logs

OFAC SOFTWARE● Sanctions filtering parameters

(RTF, CIP)

● List Management

● Controls, errors/ logs

KYC/CDD/EDD SOFTWARE● Customer onboarding

● Screening/Filtering

● Risk Rating

● Documentation Management

● Controls, errors/ logs

FinCEN 314(a) SOFTWARE● Request/Response Management

● List Management

● Controls, errors/ logs

The Report

The report will providethe following details: thebaseline configurations,

the analysis results from theobservations, staff interviews

conducted, and the gapsbetween compliance

expectations and actualresults, and the observationsand recommendations. The

report will be based ontested and observed result

sets in the context of industrypeers.

Bottom line: you’ll knowhow your AML

compliance softwareis performing.

Validating a model is an importanttest to ensure that yourprogram/process matches whatyou say that you're doing.Regardless of whetheryou're using aproduct/system or amanual process, wewill apply our holisticmodel validationmethodology. Theformula remains largelythe same, but we willreview each elementrespective to therequirement, forexample BSA vs. OFAC,and ensure you'recapturing all of the datathat you should be andthat yoursystem/program isdoing what you say it isdoing.

With that in mind, Wecan conduct a ModelValidation on BSA, OFAC,KYC/CDD, and FinCEN314(a) software. Here are a coupleof key targets within each categorythat we will address, but ourproposals detail the various stepswithin each.

What types of systemscan we validate?

Page 4: Whether the glass is half full or half empty, it's still ...€¦ · most stringent regulations, such as New York State's Department of Financial Services Part 504, ... -NYS DFS 504

ARC Risk and Compliance is a specialized consulting company that specializes in anti-moneylaundering compliance and the technology for AML compliance programs. This specialization includesBSA/transaction monitoring, OFAC/sanctions screening, KYC/CDD/EDD, and FinCEN 314(a). Weare “The AML Specialists”.

We can bridge the communication gap between what compliance needs and IT can support with thesystem they have. We believe that in order to bridge the gap between compliance and IT, the expertneeds to be able to communicate to both departments, have knowledge and experience in both, andprovide experienced solutions. We’ve been able to combine that knowledge and experience for a morethorough solution addressing both the compliance and IT requirements. Our approach ensures a better rateof success than non-specialized companies.

Many of ARC Risk and Compliance’s team members were leaders in the initial design, development,and deployment of many of the leading AML software in use today. Our team has a deep compliancebackground that can assist banks with their regulatory and compliance challenges.

Every customer is important to us and we will provide the best service possible to all clients. ARC Riskand Compliance is a certified veteran-owned small business and has a large network of professionals andalliance partners to support the ever growing demands within the financial industry.

Validation & Review Services-AML Model Validation

-AML Gap Analysis-AML Procedures: Review and Updates

Assessing, Analyzing, & Tuning Services-AML Risk Assessment

-Rules/Risk Rating/Profiling: Statistical DataAnalysis

-Tuning and False Positive Exercise

Some of Our Services

About ARC Risk and Compliance

[email protected]

@ARCRiskandComp

/ARCRiskandCompliance

/Arc-Risk-and-Compliance

(855) ARC-5995

© 2019 ARC Financial Solutions, LLC D/B/A ARC Risk and Compliance. All rights reserved. All information provided here within are proprietary.AML-ology is a registered trademark of AML-ology, LLC. Inc. 500 is a registered trademark of Mansueto Ventures LLC.

Remediation Services-Data Mining: Analysis and Correction

-Look-Back Services-Regulatory Remediation Services

Regulatory Specific Services-NYS DFS 504 Pre-Certification Service

-NYS DFS Part 500 CybersecurityScreening & Compliance Check

Staffing & Outsource-AML Program Outsource

-Staff Augmentation

Custom Development-Custom Software Development