After former Bank of New York vice president Lucy Edwards was convicted of helping her husband launder over $7 billion from Russian banks, she had one piece of advice for the bank that ended up paying $38 million in related penalties to U.S. regulators: the compliance department should've known what she was up to. Keeping tabs on employees who might abuse sensitive information has long been a standard practice among financial institutions. But as communication applications have evolved, what compliance officers need to look for, and at, has changed as well. "We are beginning to redefine our definition of what...
For an example of how corrupt management and poor internal controls can undo a financial institution, look to West Virginia's now-defunct First National Bank of Keystone.
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