If March's record penalty against Wells Fargo & Co. has reminded compliance departments of the bite of anti-money laundering regulatory fines, it has also been a reminder of something else. With acquisitions come problems.
Keeping tabs on employees who might abuse sensitive information has long been a standard practice among financial institutions. But as communication applications have evolved, what compliance officers need to look for, and at, has changed as well.
For a whistleblower program to be effective, employees have to believe that any action they take will produce results and that they will be protected from retaliation, experts say.
Grant Thornton failed to verify First National Bank of Keystone's claims or conduct appropriate tests when reviewing its 1998 financial statements, the OCC said in a statement. The Chicago-based accounting firm plans to appeal the ruling.