A Florida Supreme Court ruling denying court-ordered reimbursements by a foreign bank to a former vice president could leave some compliance officials liable for legal expenses stemming from money laundering investigations.
Compliance officers face challenges anytime two financial institutions merge. But when one bank buys up the assets and the problems of a failed competitor, the hurdles can exponentially increase.
Bank of New York Mellon and the Russian government finalized an expected settlement Thursday of a lawsuit that had sought $22.5 billion for tax revenue lost to a money laundering scheme.
Federal regulators are evaluating the merits of anti-money laundering compliance staff in an effort to ensure that unqualified individuals weren't hired to cut costs, according to bank officials.
When financial institutions suspect an employee of fraud or abuse often their first instinct is to simply file a suspicious activity report with regulators and move to the next issue. But a SAR should be filed only after the financial institution has contacted law enforcement directly, experts say.
The FDIC, in its Ombudsman report issued Sept. 5, said it is working with other federal financial regulatory agencies to develop a tool that will allow banks to more easily check job candidates against their various lists of individuals who have been fined or sanctioned.