Stephen DeParis

Background

Stephen is a director in the New York office of KPMG LLP’s Forensic Advisory Services practice. He is a decisive and process focused leader providing strategic direction and unique solutions within all areas of financial crime compliance including anti-money laundering, sanctions, know your customer (KYC), fraud, and market manipulation.  Within financial crime compliance, he has tackled many of the challenges present using emerging solutions such as machine learning, data mining and robotic automation to solve complex problems within a challenging regulatory environment. 

Professional and industry experience

Stephen has substantial experience leading Advisory engagements. He specializes in data and analytic solutions for FCC applications. Specific work includes:

Devised a roadmap to help clients start on the path to cognitive based solutions to address increasing compliance costs. The framework laid out comprehensive solutions focused on increasing efficiency throughout multi-tiered investigation processes, a focus on reducing false positives and conversion rates for transaction monitoring systems; and identifying emerging risks to increase coverage and uncover new typologies. 

Developed and modeled the primary transaction monitoring system for a global investment bank. These included all phases of development including risk coverage assessment, risk factor evaluation, model development and performance, customer segmentation, threshold analytics and model sample testing. Also participated in a Fed exam of the surveillance model and produced documentation for regulatory review. In addition, created the framework for model performance and testing as part of Model Risk Management guidelines including on-going metrics of model performance and automated sampling selection for continuous testing.  

Assumed responsibilities as a Global AML Coverage Strategist for the Private Banking and Asset Management lines of business at a major global bank. Performed data gathering, process design, analytics, and reporting to support trend analysis and performance measurement for portfolio risk assessment, account monitoring coverage, alert generation, case escalation, and Suspicious Activity Reporting (SAR) yield efficiencies. Compiled metrics across multiple sub-LOBs globally to present bi-weekly to the AML Management Committee meeting. Interfaced directly with senior leadership on a regular basis regarding KPI and metrics related issues and concerns.  Partnered and leveraged experiences with AML investigations, LOB risk management, information technology, and external / internal examiners to review strategies, gauge performance, and identify emerging customer, product, or geographic key risk indicators and trends.

Technical skills

Data Analysis, Time Series Regression, Multivariate Statistical Inference, Logistic/Ordinal/Linear Regression, Classification and Regression Trees (CART), Cluster Analysis, Data Mining, Poisson distributions, Hypothesis Testing, ARIMA Forecasting, Principal Component Analysis

Function and specialization

Stephen specializes in advisory services within financial crime compliance

Languages

English (Native)

French (fluent)

Education, licenses & certifications

MBA, Rutgers University

BS. Electrical Engineering, Rutgers University

CFE, Certified Fraud Examiner

MSCD, Microsoft Certified Developer 

Publications

Intelligent Automation in Financial Crimes Compliance. ABA Bank Compliance Vol. 39 No 1.