Transitioning to a new AML/CFT transaction monitoring system is a critical moment for any financial institution. Without proper parallel testing, institutions risk data gaps, alert discrepancies, and compliance exposure.
This AML/CFT parallel testing checklist provides a structured, risk-based framework to help banks and credit unions maintain continuous compliance during an AML software transition. It outlines the key steps needed to validate data integrity, compare alert performance, protect SAR reporting, and demonstrate sound change management to regulators.
Key takeaways:
- Protect compliance during AML system transitions with structured parallel testing and documented oversight.
- Validate alert quality and data accuracy through side-by-side comparisons and risk-based sampling.
- Demonstrate strong change management to regulators with audit-ready documentation and independent review.
