Importance of Tuning and Optimization in Financial Institutions

Financial institutions benefit from performing tuning on monitoring systems to optimize outcomes and gain valuable insights into customers and data. Tuning enhances risk coverage by identifying gaps or redundancies in monitoring scenarios, improving system effectiveness, accuracy, and compliance overall. Regulatory expectations, such as those outlined in the FFIC BSA AML exam manual and the New York DFS Part 504 regulation, emphasize the need for periodic evaluation of filtering criteria, thresholds, and detection scenarios.