Federal bank examiners have added a new criterion to their evaluations: how well banks coordinate their anti-money laundering, anti-fraud and data security efforts, according to compliance professionals. When examiners from the Office of the Comptroller of the Currency began their routine examination of Capital One last year, they asked a number of questions about how well the anti-money laundering and fraud departments were working together, said Michael Kelsey, managing vice president for anti-money laundering (AML) compliance at the bank in Richmond, VA. The examiners specifically questioned how the AML and fraud prevention departments communicated, whether employees received cross-training and how...
Banks have various levels of satisfaction with their transaction monitoring systems and rely on employee referrals for the best indications of suspicious activity, according to a U.S. Treasury Department report.
Experienced chief compliance officers, reluctant to cut any corners with their AML programs but under pressure to contain costs, are looking for synergies with other departments in their financial institutions.
Banks seeking to acquire other financial institutions must carefully absorb, analyze and monitor the customer information and transaction history of its target not only to ensure it is paying a fair price but also to protect itself against possible regulatory trouble down the road.