Risk assessments, customer risk ratings and automated transaction monitoring. These are only a few components of a typical U.S. financial institution's anti-money laundering program not required by written law or regulation but still expected by federal examiners. Over the past 15 years, wide-ranging regulatory views have been promulgated by the U.S. Federal Reserve, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corp. and the Financial Crimes Enforcement Network through guidance, supervisory letters, bulletins, alerts, advisories and the Bank Secrecy Act exam manual. While federal regulators are congressionally authorized to issue rules that implement the Bank Secrecy...
Pending requirements that U.S. financial institutions more thoroughly vet their accountholders may especially challenge broker dealers, some of which are designing new systems to scrutinize investment advisers and others who control omnibus accounts and pooled investment vehicles, say sources.
Citigroup's Los Angeles-based subsidiary Banamex USA has agreed to forfeit $97 million to avoid criminal charges for having willfully failed to maintain an effective anti-money laundering program for at least six years, federal prosecutors disclosed Monday.
A community bank operating from a single branch in Southern California agreed to pay $7 million to the U.S. financial intelligence unit for willfully and knowingly violating the Bank Secrecy Act while still under the terms of previous enforcement actions.
Several of the world's largest financial institutions have moved quickly to limit risks posed by their corporate clients in the six months since U.S. officials finalized a long-anticipated customer due diligence rule, while smaller lenders have treaded a rougher path towards implementation.