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Banks Underestimate Cost of Transaction Look Backs, Consultant Says
By Matt Squire
printLook backs, or independent reviews, of a financial institution's account and transaction history can put a strain on a bank's limited resources, says Darren Donovan, a principal with KPMG Forensic in Boston. Banks subject to regulatory enforcement actions have increasingly found themselves required to perform look backs for evidence of suspicious activity. After ordering three look backs in 2003 and 2004 combined, U.S. regulators called for seven in 2005 and nine last year, according to Fortent Corp. data. As of March 14, five had been ordered this year. These reviews, which focus on periods of months or even years, can...
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