Federally-insured banks are getting the message about the importance of doing their own anti-money laundering risk assessments, says Lisa Arquette, associate director of the Federal Deposit Insurance Corp.'s (FDIC) Anti-Money Laundering and Financial Crimes Branch. While a risk assessment isn't mandatory, Arquette noted that the expectations outlined in the Federal Financial Institutions Examination Council's (FFIEC) Bank Secrecy Act/Anti-Money Laundering Examination Manual are taking root. "When we first issued this manual and the risk assessment became an expectation in the BSA compliance area, we were conducting the risk assessment about 80 percent of the time," says Arquette. "That was a lot,...
In every longstanding relationship, there comes a point when both parties begin to question something they once thought they had agreed on. Talk to a Bank Secrecy Act officer at a conference, over dinner or in a bar and one point of friction with federal regulators inevitably becomes clear.
The U.S. regulator of national banks has begun stress testing midsize financial institutions for adequate safety and soundness controls, including anti-money laundering and sanctions checks, say financial lobbyists and compliance officers.
Federal bank examiners have added a new criterion to their evaluations: how well banks coordinate their anti-money laundering, anti-fraud and data security efforts, according to compliance professionals.
An intergovernmental watchdog that recommends regulations to fight money laundering will release a global threat assessment of the crime as early as 2010, as part of an effort to prod countries to stiffen their laws.
Reaching the point where an off-limits, high-risk jurisdiction becomes bankable is a complex compliance process involving many factors, including political and economic stability, country reports by international watchdogs and old-fashioned shoe leather, say former bankers and consultants.
The OCC has asked financial institutions to submit comments about the data collection system, which the agency says is designed to "enhance the ability of examiners and bank management" to identify money laundering risks in bank products, services, customers and locations.
The Federal Reserve and New York State Banking Department entered into a written agreement with Sumitomo Mitsui Banking Corp. on Wednesday ordering its New York branch to improve Bank Secrecy Act compliance deficiencies a month after another Japanese bank was cited for risk management deficiencies.