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Regulators Asking More Small Institutions to Invest in Automated Monitoring
By Brian Monroe
printFederal regulators are asking a greater number of community banks and credit unions to invest in automated transactional monitoring systems similar to those used by their larger counterparts, say consultants. The push follows disclosures by U.S. officials that criminals have exploited the financial institutions to deposit the proceeds of narcotics sales and process wires related to illegal gambling and other prohibited transactions, in part because the relatively small companies have few resources for anti-money laundering (AML) controls. Regulators have raised the concerns because many community banks and credit unions can't quickly identify suspicious transactions through the manual monitoring processes they...
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