Shaping the future of Red Flag Tests  AML Analytics has developed a ground-breaking Red Flag Test solution designed to carry out an on-the-spot transaction monitoring system health check. Our innovative RegTech tests will exercise Red Flag rules using Smart Scenarios consisting of synthesised transaction data. Red Flag Tests will identify vulnerabilities in a transaction monitoring system’s alerting capabilities and validate Red Flags at the click of a button.

Each Smart Scenario encompasses multiple Red Flags and covers different transactional behaviour to emulate the typical characteristics of a particular type of financial crime, such as human trafficking, diamond smuggling, drug trafficking or the illegal wildlife trade. Our Red Flag Tests contain synthetic data to mimic the exact transactional patterns of defined money laundering typologies such as the ones mentioned here.

Testing will highlight transaction monitoring system inaccuracies and identify incorrect threshold parameters that can cause a system to produce unnecessary alerts or miss specific behavioural-type transactions.

It will provide the intelligence required by a system technician to understand existing Red Flag assumptions and to then carry out remediation and post-testing enhancement activities to rid a transaction monitoring system of time-wasting inaccuracies.

We have collated a unique database of over 10,000 Red Flags that have been defined by regulators, law enforcement agencies and banking associations around the globe.

AML Analytics is leading international regulatory guidance on Red Flag Tests through specialist research. Our Red Flag Tests and Smart Scenarios have been created in accordance with international best practice recommendations and guidance from FATF, UNODC, OCC, FinCEN, HKMA, and many others.

To find out more, contact a member of the AML Analytics team by clicking on the interactive map

What are the benefits of Red Flag Testing with AML Analytics?

•  Our testing is faster, simpler and more cost effective than any other transaction monitoring system testing process on the market

• Testing aligns with and exceeds global regulatory expectation

•  Risks associated with sanction violations and subsequent AML penalties are mitigated

•  Smart Scenarios consisting of synthesised transaction data will stress test and validate varying threshold parameters of Red Flags to ensure compliance

•  Emerging Red Flags and risk indicators which lie outside a financial institution’s existing Red Flag parameters are identified

•  Our testing processes do not require any access to a financial institution’s systems or customer data and no onsite resource or UAT access is needed

TMV Online

For TMV and Red Flag Test customers, secure login credentials allow access to TMV Online, our web-based portal that provides a similar function to Analyser Online and has been developed specifically for transaction monitoring data.

TMV Online provides high level overview dashboards and data analytics for each Suspicious and Non-Suspicious Scenario in the form of colour-coded charts and graphs so that a financial institution will be able to understand performance levels and system limitations. 

Drill down into the graphs in TMV Online for a detailed analysis of alerts generated per segment and transaction type, with a level of granularity that is now expected by Regulators. The tool will enable customers to easily identify and analyse hits and misses from each Scenario in a test and facilitate understanding about performance levels and limitations of their transaction monitoring systems.

TMV Online provides full reporting capabilities where all transactional data, entire transaction sequences and overall results can be easily accessed.