Cryptoasset Anti-Financial Crime Specialist (CCAS) Certification Practice Test

What should be incorporated into the written procedures when integrating an AI tool into a transaction monitoring system?

1. The number of daily transactions the AI tool will monitor

2. Where the AI tool is located

3. The date on which the regulator approved the AI tool

4. A description of the models used by the AI tool

The correct answer is: A description of the models used by the AI tool

Incorporating a description of the models used by the AI tool into the written procedures for integrating it into a transaction monitoring system is essential for several reasons. This description provides clarity on how the AI operates, including the algorithms and methodologies employed to detect suspicious activities. Understanding the models allows organizations to evaluate their effectiveness, ensure they are appropriate for the specific risks associated with their transactions, and comply with regulatory standards. Furthermore, having this description aids in auditing processes, as it enables stakeholders to assess whether the AI tool is functioning as intended and adheres to the organization's overall anti-financial crime strategy. The other options, while possibly informative, do not provide the same level of critical oversight and operational transparency. For instance, knowing the number of daily transactions the AI tool will monitor may offer a glimpse into its capacity but doesn't contribute to understanding its decision-making processes. The location of the AI tool is less relevant in context to its functionality and compliance, and the date of regulatory approval, though important for context and compliance, does not inform users about how the tool predicts and responds to potential threats in transactions. The focus should remain on the mechanisms at play within the AI, which is why describing the models is paramount.