Banks Increasingly Asking Corporate Clients to Take on AML Duties, Say Consultants

By Brian Monroe

Faced with raised compliance expectations, many large financial institutions are expanding the types of corporate clients they ask to implement anti-money laundering controls to include import-export businesses, payroll companies, third-party payment processors and payday lending firms. The compliance changes for the companies, which are not under the purview of the U.S. Bank Secrecy Act or the Patriot Act, follow reports dating back to late 2009 that banks were dropping accounts tied to third-party payment processors or asking the businesses to better scrutinize their clients. Since then, banks have broadened those demands to other industries, asking the businesses to formalize their...