Automated monitoring systems are a tool to help institutions identify potentially suspicious activity. They are able to look at a wide range of account activity, identify trends, etc. The FFIEC BSA/AML Examination Manual states that …Understanding the filtering criteria of a surveillance monitoring system is critical to assessing the effectiveness of the system. System filtering criteria should be developed through a review of specific higher-risk products and services, customers and entities, and geographies. System filtering criteria, including specific profiles and rules, should be based on what is reasonable and expected for each type of account. Not only does an auditor need to have an understanding of the parameters fed into the automated system but they also need to assess how any resulting data provided by the system (or red flags) are being handled.
Kevin explains more in the video.
Published 2026/06/09