Model Risk Management Specialist

Kraken Digital Asset Exchange; Brasil; Remote; BRL 180,000 - 300,000; Full time

Job summary

Kraken Digital Asset Exchange is seeking a skilled Model Risk Management Specialist focused on Transaction Monitoring and Customer Risk Assessments for AML/CFT. You will validate models, review documentation, assess performance and biases, and ensure compliance with EU/US AML directives and FATF guidance.

You will collaborate with model engineers, risk teams, and business units, leveraging Python/R/SQL and visualization tools to monitor model effectiveness in fiat and crypto payments.

Qualifications

• 5+ years of experience in model validation or risk management.
• Understanding of international model risk management rules and regulations.
• Strong understanding of machine learning and statistical modeling techniques.
• Deep understanding of fiat and crypto payment flows.

Responsibilities

• Validate Transaction Monitoring and Customer Risk Assessment models for AML/CFT.
• Review model development and testing documentation and data quality.
• Assess model performance, accuracy, and stability; identify potential biases.
• Ensure AML/CFT regulatory compliance (EU directives, US BSA/AML, FATF).
• Develop and maintain model validation methodologies and frameworks.
• Collaborate with Model Engineering, risk management, and business units.
• Prepare high-quality documentation including validation reports and risk assessments.

Skills

Model Validation

AML/CFT

Python

R

SQL

Machine Learning

Data Visualization

Regulatory Knowledge

OCC SR 11-7

Crypto Payments

Communication

Statistics

Education

Bachelor's degree in quantitative field

Tools

Claude

ChatGPT

Job description

The opportunity We are seeking a highly skilled and experienced Model Risk Management Specialist to join our team, focusing on Transaction Monitoring and Customer Risk Assessments models for Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) purposes.

The successful candidate will be responsible for ensuring that our Transaction Monitoring, Customer Risk Assessment and Screening models are robust, effective, and compliant with regulatory requirements.

Model Validation: perform independent validation of Transaction Monitoring / Customer Risk Assessment / Screening models, AI models (built in Claude or ChatGPT), including but not limited to: Reviewing model pre & post development documentation, data quality, accuracy, access and testing methodologies.

Assessing model performance, accuracy, and stability.

Evaluating model risk and identifying potential biases.

Reviewing AI Models for AML/CFT Program AML/CFT Regulatory Compliance: ensure that Transaction Monitoring and Customer Risk Assessment models comply with relevant AML/CFT regulations, including but not limited to: EU AML/CFT Directives.

US BSA/AML regulations.

FATF recommendations.

Risk Assessment: conduct risk assessments to identify potential AML/CFT risks associated with Transaction Monitoring and Customer Risk Assessment models, including but not limited to: Identifying higher-risk customer segments, products, and geographies.

Assessing the effectiveness of controls and mitigants.

Model Monitoring and Maintenance: develop and implement procedures for ongoing model monitoring and maintenance, including but not limited to: Annual reporting & certification Tracking model performance and identifying degradation.

Conducting regular model reviews and updates.

Collaboration and Communication: collaborate with various stakeholders, including but not limited to: Model Engineering and owners.

AML/CFT subject matter experts.

Business units and risk management teams.

Documentation and Reporting: prepare and maintain high-quality documentation, including but not limited to: Model validation reports.

Risk assessments.

Regulatory compliance reports.

Methodology Development: contribute to the development and maintenance of model validation methodologies, including but not limited to: Developing and refining model validation frameworks.

Identifying best practices and industry standards.

What You Bring Bachelor's degree in a quantitative field (e.g., mathematics, statistics, computer science, engineering).

5+ years of experience in model validation, risk management, or a related field, preferable in AML/CFT.

Understanding of international Model Risk Management rules and regulations, such as OCC SR 11-7.

Strong understanding of machine learning and statistical modeling techniques.

Deep understanding of fiat and crypto payment flows Proficiency in programming languages (e.g., Python, R, SQL).

Experience with data visualization tools (e.g., Tableau, Power BI).

Strong understanding of financial markets, products, and services.

Excellent written and verbal communication skills, with the ability to articulate complex technical concepts to non-technical stakeholders.