Automated Monitoring System (AMS) Model Validation


Model Governance

Data Integrity

Model Output and Performance

Helping you meet regulators’ demands for independent AMS model reviews

We bring the people and know-how to conduct rigorous, risk-based AMS model validations to assess how well your model governance, data integrity, and parameter thresholds adhere to regulatory guidance.

Conducting an AMS model validation is both an art and a science.

Hundreds of banks and credit unions view us as trusted artists and scientists and count on us to bring insightful regulatory intelligence during AMS model validations.

With real-world experience as former bankers, we understand the effect of increased regulatory pressure on your team. Relying on plug-and-play settings, for example, is a path to frustration, and we know how it feels to be overwhelmed by alerts and struggle to discern what warnings to heed or ignore.

Members of our team have done everything from examining data integrity and its quality and conducting “above the line” and “below the line” testing to assessing a model’s design and how well it’s tailored to your risk profile.

We also bring a solid track record in understanding the quirks of various AMS solutions in the marketplace and performing system validations on them.

Our assessments consider both IT and BSA perspectives, and we focus on three areas:

  • Model governance
  • Data integrity
  • Model output and performance

Throughout each engagement, we communicate with you to keep you informed on our progress and findings. At the conclusion, our exit meeting and written report document our scope, methodology, findings, and recommendations.

Once our AMS Validation is complete, you can be confident that your model is sound and meet examiners’ escalating expectations.

TCA gives you A Better Way to gauge whether your AMS model meets its objectives and protects you from money-laundering risks.

Key Deliverables Include:

  • Testing administrative controls, data import, and data integrity.
  • Reviewing system parameters to be sure they’re functioning correctly and identifying suspicious activity.
  • Ensuring that your model has been calibrated to your bank's risk profile.
  • Analyzing exams, reviews, and monitoring reports to trace the resolution of issues requiring corrective action.
  • Providing exceptional service that respects your time.

AMS Insights


Examiners Stress Independent Audit Critical to BSA Success

By | August 2, 2019

On July 22, 2019, the prudential regulators issued FIL-43-2019 making a joint statement on BSA/AML risk-based approaches in examinations. TCA’s BAT reviewed the statement and took away three key points: transparency, risk assessment and independent audit. Transparency – The statement states: “This statement is intended to improve transparency into the risk-focused approach used for planning …

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complaints folder

Vendor Management – Monitoring Consumer Complaints

By | July 16, 2019

Even though a topic may not fall under TCA’s typical umbrella of compliance, we often have broader compliance discussions with our clients that we feel are important to share for informational purposes; this is one of those instances. We were told by a banker that an examiner had cited a deficiency in the institution’s vendor …

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depositing check with mobile phone

Regulation CC Changes Finalized Eight Years Later

By | June 26, 2019

You may recall a 2017 article discussing the long-awaited Regulation CC changes which, after reading, we found out were not the changes compliance professionals were waiting for. Well, wait no longer! Like St. Louis Blues fans, the day you’ve been waiting for has arrived! OK, that’s a lot of excitement for Regulation CC, but it …

Regulation CC Changes Finalized Eight Years Later Read More »


Accepting Private Flood Insurance Policy – Two Choices

By | April 4, 2019

TCA’s February 7, 2019 Special Release “Final Rules Released for Acceptance of Private Flood Insurance” said lenders can accept a private flood insurance policy and easily identify an acceptable policy. The rule suggests private providers add the following “compliance aid” clause: ‘‘This policy meets the definition of private flood insurance contained in 42 U.S.C. 4012a(b)(7) …

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It’s a Sign! (That’s Been Removed)

By | March 19, 2019

On Monday, March 18, 2019, the FDIC joined the other prudential regulators in removing the requirement to make available the Annual Disclosure Statement required under 12 CFR 350, to simplify their regulation as the information is available through the FDIC’s website. The OCC and FRB had previously removed this requirement in 2017 and 1998, respectively. …

It’s a Sign! (That’s Been Removed) Read More »

flood insurance policy

Final Rules Released for Acceptance of Private Flood Insurance

By | February 7, 2019

Back in 2012, the Bigger-Waters Act required implementation of rules regarding standards for acceptance of flood insurance policies by non-NFIP insurers, commonly referred to as private flood insurance. In October 2013, the regulators published a proposed rule. On January 28, 2019, the FDIC was the first regulator to release the joint rulemaking but we expect …

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[email protected]

Office Location

2021 Midwest Road, Suite 200,
Oak Brook, IL 60523

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