Federal Regulator Warns Banks about Complying with BSA/AML Laws

Bloomberg BNA recently reported that a Federal regulator is not too optimistic about technological advancements in the banking sector, especially the Bank Secrecy Act (BSA) and Anti-Money Laundering (AML) compliance laws that could leave financial institutions vulnerable to risks.

These concerns were reflected in the Office of the Comptroller of the Currency’s (OCC) semi-annual risk report. OCC believes that the advancements in financial technologies could increase the risk scenario as these banking products could be vulnerable to criminal activities. Not having appropriate controls on products and services that could change in the future – could result in increased BSA/AML risks.

These fears have led some banks to re-evaluate and terminate some foreign customers due to unpredictability about the host country’s BSA/AML practices. The process of “de-risking” covers restricting or denying services to a wide range of customers to avoid perceived regulatory risk.

There are four pillars to a solid BSA/AML program that will ensure the soundness of your financial institution and keep regulators at bay. Getting backed up with a BSA AML Software is the wave of the now as it stands and we find that there is no stopping regulatory change any time soon.

 

Article Source: Jeff Bater of BNA.com

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