AML testing assesses whether the programme’s controls work, while monitoring follows transactions and alerts over time.
Understanding AML Testing & Monitoring Review
When to consider this service
Compliance officers, financial institutions and transaction teams reviewing customer risk, foreign investment or financial-crime controls can use this service to clarify a particular issue. A useful starting question is: “How does AML testing differ from transaction monitoring?” Begin with the facts behind that question rather than assuming that a standard package will resolve it.
Scope of work
The engagement can cover the following workstreams. The proposal specifies which apply to your matter and what evidence or specialist input is needed.
- Define test criteria and sample populations.
- Review alert handling and control performance.
- Track remediation and recurring exceptions.
Documents and information to prepare
Start with the records below where available. They help establish the facts before a more specific checklist is agreed.
- AML policies.
- Alert logs.
- Customer files.
- Testing results.
Provide the relevant entity, transaction or reporting period and any existing notice or deadline. Identify missing or inconsistent records so they can be addressed explicitly.
A key issue to resolve
Independent testing and ongoing monitoring have different responsibilities and evidence requirements.
How the engagement works
- Define the question: define test criteria and sample populations, using the available AML policies and the facts you provide.
- Examine the evidence: review alert handling and control performance. Record unresolved information and the assumptions that affect the analysis.
- Agree the action: track remediation and recurring exceptions. Set the required deliverables, responsible owners and any follow-up or external dependency.
Deliverables, fees and timing
The proposal for AML Testing & Monitoring Review sets out the analysis, documentation or coordination deliverables and the work you retain. The availability of AML policies, alert logs, customer files and testing results affects readiness and the amount of follow-up needed. Fees and the working schedule are agreed after that initial assessment. Any required independent report, legal representation or authority application is identified as a separate responsibility where relevant.
Official resources
Use these official resources for the relevant framework. Application to a particular entity, period or jurisdiction requires a separate assessment.
Discuss your requirement
Share a short summary of your AML Testing & Monitoring Review requirement and the records already available. BIATConsultant can assess the proposed scope and explain the next steps.
FAQ
Practical questions about AML Testing & Monitoring Review.
How does AML testing differ from transaction monitoring?
Independent testing and ongoing monitoring have different responsibilities and evidence requirements.
What records should I prepare for AML Testing & Monitoring Review?
What can the scope of AML Testing & Monitoring Review include?
How are fees and the schedule agreed?