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In 2013, Compliance Professionals See Challenges from Expected CDD Rules, Tough Supervision
printThough none can predict the future, one thing in the AML world seems certain: the jobs of compliance officers won't get any easier in 2013. After a year in which banks paid billions for lapses related to anti-money laundering (AML), sanctions, counterterrorist financing and tax evasion violations, the same financial institutions are gearing up to tackle expected rules from the U.S. Treasury Department's Financial Crimes Enforcement Network (FinCEN) on beneficial ownership recordkeeping. At the same time, U.S. banks will likely see tougher enforcement from the department's Office of the Comptroller of the Currency (OCC) and other regulators after 2012's high-profile...
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In the messy art of prognostication, everything is overly easy and nothing exact, not even compliance expectations. But one thing government officials and financial industry representatives seem certain of: 2015 will prove just as challenging as the past year for AML professionals.
The number of enforcement actions issued annually by the top regulator of large U.S. banks declined in 2013, according to a semiannual report on risk published Wednesday by the agency.
In a year when the number of enforcement actions issued by federal financial regulators fell by nearly half, Bank Secrecy Act-related penalties earned an unusual distinction. They declined by less than 14 percent.
With plenty of convincing reasons, representatives of the law enforcement and compliance industry say the coming year is fraught with serious challenges.
Relative to the year before, the anti-money laundering (AML) compliance industry drew few headlines over the past 12 months, and yet no one would tell you their job got any easier.
Global financial institutions are facing tougher anti-money laundering compliance exams from regulators in nations that have recently bolstered their laws, Bank Secrecy Act officers said Thursday.
I'm not going to give you that "best of times, worst of times" crap in summing up 2012. When it comes to the year in compliance, there was just the "worst of times" and not much, if any, "best."
For many anti-money laundering and sanctions professionals, 2012 will be remembered as a year of record fines. Banks paid billions to settle AML and sanctions compliance violations, with one penalty alone reaching almost $2 billion.
Criticisms of the U.S. Justice Department's apparent decision to forego indictments of HSBC and its employees misses a larger point: the department probably couldn't have won convictions if it tried, say prosecutors.
A slew of recent enforcement actions issued by federal regulators contain stern warnings for senior bank managers that they are responsible for their institution's compliance with U.S. anti-money laundering rules, say analysts.
The number of federal anti-money laundering enforcement actions issued in the first half of 2012 fell by 35 percent in comparison to the total levied during the same period last year, data shows.
The number of fines levied by the U.S. nongovernmental regulator of securities and brokerage firms more than doubled in the first five months of 2012 compared to the same period in 2011.
A report by the United Kingdom's chief financial regulator on the anti-bribery compliance efforts of investment banks likely signals coming enforcement actions, and greater scrutiny of depository institutions, say former officials.
The total number of anti-money laundering enforcement fines handed down by federal regulators rose by 67 percent in 2011 compared to the previous year.
A planned regulatory overhaul, economic sanctions against Iran and the enforcement of anti-bribery rules will be among the biggest issues British financial institutions contend with in 2012, say experts.
Whether the economy improves or stays flat in 2012, the coming year will pose a number of new challenges for the compliance professionals charged with implementing sanctions and anti-money laundering controls, say industry leaders.
Tax investigations, political turmoil and economic sanctions were among the biggest challenges faced by the compliance departments of financial institutions in 2011, say bank officials and industry experts.
The number of anti-money laundering enforcement actions handed down by federal banking regulators rose nearly 48 percent in the first six months of 2011 compared to the same period last year, data shows.
Possible budget cuts for the U.S. financial intelligence unit are spurring concerns that the bureau may curtail its funding of the Internal Revenue Service's anti-money laundering examinations, say current and former federal officials.
Federal banking regulators are increasingly relying on informal actions to pressure banks to improve their anti-money laundering programs out of the public spotlight, say compliance professionals.