How Banks can Ensure Compliance with BSA/AML Regulations

Money Laundering is the act of concealment of the origins of illegally obtained money. It can be done by transfer of money to foreign banks or investing in legitimate businesses. Generally, the money laundered is obtained by committing criminal acts like drug trafficking or terrorist activity. It is a major evil that not only hinders the progress of nations, but also empowers anti-social elements.

BSA/AML Regulations

BSA stands for Bank Secrecy Act and AML stands for ant-money laundering act. The BSA AML Regulations have been created to stop money laundering. The AML/BSA compliance demands strong risk assessment and control of activities typically associated with money laundering. The BSA/AML regulations require financial institutions to record and/or report on cash purchases of negotiable instruments, and suspicious activity that might indicate money laundering, tax evasion or other crimes.

BSA/AML regulations require financial institutions to do the following:

• Report suspicious activity that might signify money laundering, tax evasion or other criminal activities
• Keep records of cash purchases of negotiable instruments
• File reports of cash transactions above $10,000

Challenges for being Compliant with BSA/AML Regulations

The policies created by regulatory bodies encompass compliance with BSA/AML regulations. These regulations are updated from time to time, which makes it hard for an organization like a bank to stay abreast with the new rules. In scenarios where financial institutes are unable to update their employees with the new information, it can lead to inconsistency in operation and overlooking of anti-money laundering laws. Any flouting of rules laid out by regulatory bodies can result in a fine or a lawsuit, which can be detrimental to the health of an organization. Keeping up with BSA/AML regulations and all the other policies created by regulatory bodies can be quite tough and a major challenge for any organization. Making use of a Risk Management Software is the need of the hour when it comes to keeping up with updated regulations.

Minimizing Risks with AI Powered Automated Risk Management Software

Artificial intelligence (AI) is one of the most transformative technologies to have graced the IT world. It has completely changed the landscape of software development by automating processes. By working on big data, Risk Management Software decipher patterns and makes decisions. Incorporating an AI powered Risk Management Software is a great way to minimize risks in financial domains like banks. This software updates itself with the prevailing trend and correspondingly informs employees working in a financial institute about all the latest changes. A comprehensive AI powered Risk Management System comprises of different modules which perform different tasks and ensure proper compliance with BSA/AML regulations.

360factors’ Predict360 Solutions

Predict360 Solution comprises of different modules which can be used for a variety of tasks. Powered by Artificial Intelligence (AI), these modules help in automation of tasks and help in reducing the number of resources. Reduction of resources further helps in reducing the cost of the whole operation.

This AI powered software is quite affordable and has low upfront and ongoing costs for banks and financial institutions of all sizes. It features consultant managed service which enables third-party consultant firms to help manage their clients’ systems and provide more value from your relationship with existing consultants.

Various Modules of Predict360 Solution

Predict360 Solution is the perfect tool for ensuring compliance with BSA/AML regulations. It has the following modules which collectively can be utilized for creating the perfect Risk Management System:

1. Policy and Procedure Management Module:

This module provides organizations the ability to understand all aspects of the document lifecycle. It can do a number of tasks relevant to procedure management including creation, approval, centralized storage, remote access across the organization, access control, version control, change tracking, and change notification. Making use of this module is an effective way to ensure compliance with BSA/AML regulations.

2. Learning Management Module:

With this module you can link trainings that are associated with regulatory change, risk, audit, incident, case, policy, and procedure and qualification requirement. By making use of this module, your employees will be able to understand and follow rules which will allow you to stay compliant at all times.

3. Compliance Management Module:

It enables organizations to collect, store, track, and collaborate on all activities as per the compliance and regulatory reporting requirements. It is a very important module that ensures full compliance of a bank’s operations with the policies created by regulatory bodies.

4. Regulatory Change Management Module:

This module helps in identifying, quantifying, monitoring, and minimizing risks. With this Risk Management System at your disposal, you will be able to access the environmental, financial, legal, and reputational and safety risks at the business unit level.

5. Audit Management Module:

The module enables organizations to manage their complete audit lifecycle. It boasts of a highly configurable, flexible data-gathering and aggregation framework which enables organizations to set up any type and structure of audit. With its amazing capabilities, it is great for risk management and a very important part of the Predict360’s Solution.

6. Qualification Management Module:

This module monitors, aggregates, and maintains employee qualifications. It streamlines the qualification process and ensures that employee qualifications remain current at all times.

7. Anonymous Hotline Reporting Module:

This module acts as a single centralized data repository for ethics, risk, and compliance management. By ensuring all the incident data is collected at all times, it helps in risk assessment, risk analysis, and creation of remediation plans.

8. Expert Connect Module:

With this module at your disposal, you get access to a wide range of consulting experts who are former and existing compliance managers, regulators, system operators and consultants across a variety of industries. By making use of this module, you can take help of experts and clear your doubts for better risk management.

9. Performance Management Module:

This module maps individual goals to organizational objectives and streamlines the performance management process. This allows the institution like banks to increase their performance and remain compliant with the standards laid out by regulatory bodies.

About the company

360factors, Inc. (Austin, TX) helps companies improve business performance by reducing risk and ensuring compliance. Predict360, its flagship software product, vertically integrates regulations and requirements, policies and procedures management, risks and controls, audit management and inspections, and on-line training and qualifications, in a single cloud-based platform based on artificial intelligence.

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