The U.S. Treasury Department estimates that criminal enterprises generate $300 billion annually in illicit proceeds, which has created a global money laundering industry that can easily implicate unprepared companies. Large financial institutions and corporations are often the first line of defense against money laundering—and the effort to stay ahead of criminals’ latest tactics requires constant vigilance. However, a legacy of capturing and storing customer information in multiple disconnected databases combined with the challenge of correctly calibrating detection systems, often lead to thousands of false positives, higher costs, and an insufficient ability to identify real problems. Ultimately, this could result in penalties and sanctions that reduce profits and impair an institution’s reputation.
Stroz Friedberg works with the world’s largest financial institutions to perform assessments of anti-money laundering (AML) and economic sanction programs and supporting systems and technology. We work with our clients to resolve challenges caused by incomplete data and complex interactions among systems. We tune anomaly detection algorithms to optimize surveillance efforts. We are trusted by leading institutions and their regulators and have conducted on-site compliance assessments in many jurisdictions in the Americas, Europe, and Asia.
Our multidisciplinary teams are comprised of forensic accountants, data specialists, intelligence analysts, and licensed private investigators, and who possess years of experience conducting stakeholder interviews and extensive technical analysis. As a result, our teams are able to quickly and effectively identify, frame, and prioritize issues and remediation actions. And our professionals and senior leaders speak the language of the enforcement authorities and work effectively with internal constituencies ranging from senior executives and the board, to Legal, IT, and Compliance department leaders and staff.
Our capabilities include:
- Conducting a Holistic Review of Governance, Risk, and Compliance Systems
- Assessing the Sufficiency of Existing Scenarios to Cover AML Red Flags and Typologies and Designing Additional Scenarios
- Tuning Anomaly Detection Algorithms for AML and other Surveillance
- Reviewing the Completeness and Accuracy of the Data Relied Upon by Transaction Monitoring and Sanction Screening Systems
- Conducting Independent Testing as Required by BSA, FATCA, FFIEC, and Other Laws and Regulations
- Determining the Root Cause of System and Data Issues
- Conducting AML and Integrity Checks on High Net Worth Individuals