Under Regulatory Pressure, Global Banks Ask Affiliates for More Transparency

By Brian Monroe and Colby Adams

In the wake of a high-profile congressional hearing, more than a dozen large financial institutions have amended how they share information with affiliate institutions in bank secrecy havens, say compliance professionals. The changes include implementing new policies and expediting existing plans to legally distribute the names of suspicious clients and transactional data among affiliates, they say. The effort comes as steering committees and compliance leaders tackle new regulatory expectations following the July U.S. Senate hearing on affiliate-related compliance lapses at HSBC Bank USA. Since the hearing, regulators "have a greater expectation that U.S. and international banks will have a proper...