News
To Bank or Not to Bank: Institutions Handle Convicted, Formerly Sanctioned Clients Case-by-Case
By Colby Adams
printBanking convicted felons is no crime. In fact, many of the country's over four million formerly incarcerated criminals maintain relationships with financial institutions, at times holding sizable accounts. But for compliance officers, determining when to run a criminal check on customers or to drop client accounts over concerns about past crimes isn't always clear. Many financial institutions don't maintain such policies but instead look at the backgrounds of their clients in rare instances, and then proceed on a case-by-case basis, according to analysts. In most cost cases, financial institutions only look into a customer's criminal record after suspicious activity in...
TO READ THE FULL STORY
Related News
The Bank of England reportedly exerts "strong pressure" on Russia's second largest bank, an arrested Zetas leader's sons tweet incriminating photographs, and more, in this week's news roundup.
Last year, I told you not to believe any of that "best of years, worst of years" stuff à la Charles Dickens with regard to 2012. But if 2013 was less eventful than the prior year, every indication is that 2014 will be "challenging" for financial institutions and regulators.
Federal officials will weigh whether financial institutions can bank medical marijuana shops, New York's financial regulators asks two financial consultancies for data and more, in this week's news roundup.
Germany's BaFin is reportedly investigating potential AML violations by Deutsche Bank, a U.K. court could order the British government to pay millions to compensate a blacklisted Iranian bank, and more, in this midweek roundup.
U.S. lawmakers threaten to impose sanctions on Russia for harboring Edward Snowden, Switzerland transfers $962 million for backdated taxes, and more, in this week's news roundup.
As the compliance expectations of European regulators grow, banks should proactively move to adopt future changes outlined in proposals for the EU's Fourth Money Laundering Directive, according to the former global head of compliance at ABN Amro.
Some jurisdictions will likely struggle to comply with a call by the world's top anti-money laundering watchdog to assess their own vulnerabilities to financial crime, say industry experts.
A group of investigative journalists reveal the identities of thousands of suspected tax evaders, U.S. prosecutors increasingly turn to a civil fraud statute to prosecute money launderers, and more, in this week's news roundup.
The Reserve Bank of India confirmed that it is investigating three banks for potential money laundering violations, a forthcoming industry survey points to rising compliance salaries, and more, in this midweek news roundup.
The U.S. Treasury Department is nearing completion of a plan to use predictive analytics software to analyze regulatory data and identify possible financial crimes, an official said Tuesday.
The director of the U.S. financial intelligence unit and prominent Bank Secrecy Act officers have formed a group to discuss whether efforts to combat money laundering at times miss their mark.
The U.S. Treasury Department has launched a taskforce to evaluate the effectiveness of America's anti-money laundering regulations - the first ever such review of the 1970 Bank Secrecy Act and related laws.
A former director of the nation's financial intelligence unit will join the Washington, D.C. office of Cleary Gottlieb Steen & Hamilton LLP as of counsel, the law firm said Monday.
U.S. officials are weighing whether to expand the use of specialized financial analysis units beyond America's theaters of war as part of an effort to fight transnational crime groups, governmental sources say.
The nation's financial intelligence unit will relocate dozens of employees from its current Virginia headquarters to Washington, D.C. as part of an effort to better integrate with other U.S. Treasury Department offices.
The U.S. Justice Department's top anti-money laundering enforcer will lead the Financial Crimes Enforcement Network beginning next month, the bureau said Monday.
The U.S. Treasury Department is considering hiring the country's top money laundering and asset forfeiture prosecutor to head the Financial Crimes Enforcement Network, say sources with knowledge of departmental discussions.
Citigroup's top anti-money laundering and sanctions compliance officer has resigned to take a position at JPMorgan Chase, according to an e-mail obtained by ACAMS MoneyLaundering.com and an individual familiar with bank discussions.
The FDIC dinged a Coral Gables, FL bank for BSA infractions, Vatican Bank defended its AML troubles and more, in this week's news roundup.
Costs associated with the 2010 U.S. financial regulatory overhaul have prompted some large banks to repurpose their anti-money laundering compliance staff and delay transaction monitoring upgrades, say industry professionals.