Sr. Manager, Model Risk Management

As Sr. Manager, Model Risk Management at Kraken, you will focus on Transaction Monitoring and Customer Risk Assessments models for Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) purposes. You will be responsible for ensuring that Transaction Monitoring, Customer Risk Assessment, and Screening models are robust, effective, and compliant with regulatory requirements.

What you'll do

• Perform independent validation of Transaction Monitoring, Customer Risk Assessment, and Screening models, including AI models built in Claude or ChatGPT, by reviewing model pre and post development documentation, data quality, accuracy, access and testing methodologies, assessing model performance and stability, and evaluating model risk and identifying potential biases.
• Ensure that Transaction Monitoring and Customer Risk Assessment models comply with relevant AML/CFT regulations, including EU AML/CFT Directives, US BSA/AML regulations, and FATF recommendations.
• Conduct risk assessments to identify potential AML/CFT risks associated with Transaction Monitoring and Customer Risk Assessment models, including identifying higher-risk customer segments, products, and geographies, and assessing the effectiveness of controls and mitigants.
• Develop and implement procedures for ongoing model monitoring and maintenance, including annual reporting and certification, tracking model performance and identifying degradation, and conducting regular model reviews and updates.
• Collaborate with Model Engineering teams, AML/CFT subject matter experts, business units, and risk management teams.
• Prepare and maintain high-quality documentation, including model validation reports, risk assessments, and regulatory compliance reports.
• Contribute to the development and maintenance of model validation methodologies, including developing and refining model validation frameworks and identifying best practices and industry standards.

What you bring

• A Bachelor's degree in a quantitative field such as mathematics, statistics, computer science, or engineering.
• 5+ years of experience in model validation, risk management, or a related field, preferably 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 such as Python, R, or SQL.
• Experience with data visualization tools such as Tableau or 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.

Nice to have

• Professional certifications such as FRM, CDA, or CAP.
• Experience with AML/CFT transaction monitoring and Customer Risk Assessment systems.
• Knowledge of cloud-based technologies.
• Experience with agile development methodologies.

About Kraken

Kraken, founded in 2011 and owned by Payward, is one of the world's longest-standing crypto platforms, trusted by over 10 million individuals and institutions globally. It offers spot trading, margin, futures, staking, and OTC services for both individual investors and institutional clients.