The client needed to validate models implemented for AML use cases like alert scoring and customer risk scoring, ensuring compliance with SR 11-7 guidelines and regulatory requirements.

Comprehensive validation of AML models and output testing.

1. Conceptual Soundness and Model Output Testing: Reviewed theory and model selection practices, validated data utilized and feature selection processes.

2. Model Testing: Conducted HL test, binomial, likelihood coefficient validation, and measures like recall and precision testing. Performed model replication and benchmarking against challenger models.

3. Validation Documentation: Reviewed model validation report as per SR 11-7 guidelines and client's policies/templates, provided assessment and findings with evidence.

4. Execution: Identified and resolved model document deficiencies, recommended enhancements to model monitoring process.

Improved model governance and compliance.

- Identified and resolved document deficiencies.

- Recommended enhancements to model monitoring framework.

- Ensured compliance with regulatory guidelines.

- The improved governance framework strengthened the AML model's reliability.