Demand for AML model risk validation specialists surging in already hot compliance job market

Demand for AML model risk validation specialists surging in already hot compliance job marketAnalytical maestros with a mastery of mathematical models and how they weave through financial crime compliance programs are finding their specialized skill set in high demand, even more than other compliance jobs in an overall frothy market, say analysts and recruiters in the field.

The current demand for “model risk validation” experts arises from a confluence of several events. In April 2011, the U.S. Treasury’s Office of the Comptroller of the Currency (OCC) and Federal Reserve issued guidance on the expectations for validating risk models and the need for independence in their review. Recent years have also seen tougher regulatory expectations and high-profile enforcement actions highlighting compliance failures partially tied to model missteps.

As a result, banks in recent years have scrambled to find individuals who understand anti-money laundering (AML) programs and validation procedures for related models – for example, those tied to transaction monitoring and customer risk assessments – pushing demand for the creation of separate, more independent AML validation teams.

Source: ACFCS

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