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Examiners Prodding Banks on Client Risk Rankings, Say Compliance Officials
By Brian Monroe
printA money services business operating in an area known for narcotics trafficking in southern Texas offers only check cashing services. It has a strong anti-money laundering program and trains its employees often. But for the financial institution banking the company, a question arises: is the business a moderate- or high-risk client? Since 2008, federal financial regulators have increasingly quizzed compliance staff about such scenarios in an effort to determine how banks are distinguishing their low-, moderate- and high-risk clients, according to bank officials. The heightened scrutiny has been due, in part, to fallout from the mortgage meltdown and changes in...
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