A financial institution (FI) recently updated its transaction monitoring (TM) thresholds During validation which should be provided as evidence of optimized thresholds’? (Select Two.)

A financial institution (FI) recently updated its transaction monitoring (TM) thresholds During validation which should be provided as evidence of optimized thresholds’? (Select Two.)
A . A copy of the FI’s AML risk assessment
B . Comparison against past suspicious activity reported
C . Above-the-line and below-the-line testing
D . Length of time the FI has deployed the software program
E . Proof of validation from the TM software provider

View Answer

Answer: B, C

Explanation:

Comparison Against Past Suspicious Activity Reported:

This evaluates whether the new thresholds are identifying similar or improved patterns of suspicious activity compared to prior thresholds.

Helps validate that the updated thresholds align with the institution’s AML risk profile and regulatory expectations.

Above-the-Line and Below-the-Line Testing:

Above-the-line tests verify that alerts generated by the thresholds include expected suspicious

transactions.

Below-the-line tests assess transactions below the threshold to ensure no significant suspicious activities are missed.

CAMS-Audit

Reference: Advanced CAMS-Audit frameworks emphasize the importance of both historical comparison and robust testing methodologies to validate transaction monitoring system updates.