Dissatisfaction with Big Banks Could Strain AML Departments at Smaller Institutions

By Colby Adams and Brian Monroe

The transfer of billions of dollars in deposits out of large banks to smaller competitors is likely to increase the compliance work and woes of credit unions and community banks. Fueled by dissatisfaction with since-abandoned plans by financial institutions to charge for debit card use, and by the popularity of a consumer activist initiative loosely associated with political protests, hundreds of thousands of customers have closed their accounts with big banks and moved their money to smaller institutions since September. The move has the potential to strain anti-money laundering (AML) compliance departments at small banks and credit unions, according to...