An expected jump in regulatory penalties against individual bankers is motivating more compliance officers to look into obtaining personal liability insurance, with perhaps disappointing results. In congressional testimony and keynote speeches delivered over the past year, federal and state regulators have outlined plans to more frequently fine bank employees who violate rules intended to stem money laundering and other financial crimes. The plans follow criticism that prosecutors have won few convictions of bankers tied to systemic compliance violations. In April, Reuters reported that the U.S. Treasury Department could soon fine former MoneyGram compliance chief Tom Haider as much as $5...
A civil court hearing in Minneapolis on Friday will mark the first test of the U.S financial intelligence unit's power to fine individuals accused of violating federal anti-money laundering program rules.
Sometimes a decline in bank enforcement actions isn't a good thing, even for bankers. Such is the takeaway of a review of enforcement action data spanning back five years, during which the number of formal Bank Secrecy Act penalties fell nearly 20 percent while fines and regulatory demands grew.
"This time it's personal" was a promo line for "Jaws: The Revenge," the unsuccessful fourth Jaws movie featuring a great white shark that pursues a family from New England to the Bahamas. To the degree regulators are pursuing individuals for compliance failures, this time IT IS personal too.
A recent regulatory penalty citing a Brown Brothers Harriman executive made a compliance director at Bank of America wonder about his future personal liability, attendees of a business forum heard Tuesday.
The terms of a $100 million settlement disclosed Friday by MoneyGram for anti-money laundering lapses will cost the Dallas-based money remitter nearly $200 million once completed, regulatory documents show.