After filtering, a transaction may generate an alert about a person or entity in false positive. To avoid this same alert being generated the next time a similar transaction is filtered, we can create a " Good Guy " mechanism. If there is an alert with no impact, the Good Guy joker closes the alert. Good Guys are maintained in the form of a list, with applicability statistics, an expiry date and under the strict control of Compliance Officers. A regulator auditing the system would request both the Good Guy lists and, above all, the organizational process surrounding Good Guy management.
The Bad Guy is, by contrast, the listed entity that has matched on part of the transaction. These are the individuals or entities simply present in the lists. This ultra-simple practice is taught to you during the commissioning of your tools.