James DeFrantz’s Post

TD $3B fine has shaken the industry—but here’s what no one’s discussing: 𝐖𝐡𝐨’𝐬 𝐧𝐞𝐱𝐭? With increasing BSA/AML scrutiny, even if your past exams were fine, that doesn’t guarantee a satisfactory result next time. Don’t let an easy fix cost you a fine that wipes away your earnings. How can your community bank be better and more efficient? 𝐍𝐨𝐰 is the time to review controls, improve processes, and listen to your BSA Officer. By doing so, you will have a better chance of not being the next headline, but what do I know 😉 Be well. #bsa #aml #amlcompliance #compliance #bank #communitybanking #riskmanagement

BSA consent orders are no joke! They can damage a financial institution’s reputation and pocketbook. TD Bank was recently slapped with a $1.3 million dollar fine and have had their reputation sullied. This webinar will focus on lessons learned that apply to smaller institutions. Don’t miss this chance to learn from a real-life scenario. https://lnkd.in/gXe3ahYK 📅 December 6, 2024 8:00 am – 9:30 am PT 9:00 am – 10:30 am MT 10:00 am – 11:30 am CT 11:00 am – 12:30 pm ET Webinar Highlights: ✔ How much should a financial institution spend on BSA/AML? ✔ What goes wrong when alerts backlog? ✔ What happens to product development? ✔ What happens to a financial institution’s expansion plans? ✔ What is the board’s role? ✔ What is demarketing an account? Why should this be timely? ✔ What are inadequate cash handling procedures? ✔ Can you avoid screening transactions? ✔ How do you monitor insiders? ✔ What is effective monitoring? Zelle, P-2-P, ACH, wires, and more ✔ What should be done about high-risk jurisdictions? . . . #cbwn #communitybanks #banking #communitybanking #banks #bankwebinar #banktraining #BankingInsights #BSA #BSAconsentorders #AMLCompliance

Loans have emerged as a significant tool for money launderers to obscure the origins of illicit funds. Criminals often utilise shell companies to distance themselves from the business, masking the true nature of the funds and making loan repayments appear legitimate. To help the industry mitigate these risks, the experts at the AFC Ecosystem have published a new typology that can assist in monitoring loan disbursements involving high-risk customers. Check out the details of the new typology below. https://hubs.la/Q02KypjD0 Together, let’s fortify our defences and stay a step ahead of financial crime risk. 💪 #AML #Lending #Compliance #AFCEcosystem

Between June 2016 and December 2020, Metro failed to adequately monitor over 60 million transactions worth over £51 billion for money laundering risks. An error in the automated system meant transactions on the account opening day and subsequent transactions were not monitored. Junior staff raised concerns in 2017 and 2018, but issues persisted until December 2020. Therese Chambers noted that Metro's prolonged failings risked gaps in the financial system's defense. Since identifying issues in April 2019, Metro has implemented processes to remediate them, with ongoing FCA supervision. #aml #cft #amlcft #cpf #acfcs #cams #fca #AML #Compliance #Governance #RiskManagement #MetroBank #FinancialCrime #ComplianceLessons

#GTinPress | Vivek Ramji Iyer, Partner, Financial Services - Risk, #GTBharat, offers key insights into RBI's gold loan regulations, emphasising the critical need for strong KYC protocols and compliance. His perspective highlights the importance of meeting regulatory standards for non-bank financial institutions, ensuring a secure lending environment and protecting customer interests.   Know more in the Outlook Business article: https://brnw.ch/21wJP3B   #RBI #GoldLoan #KYCCompliance #Lending

RBI’s master directions on #FraudRiskManagement marks a significant step forward in addressing the challenges previously faced in the financial sector's battle against fraud. By introducing a comprehensive and cohesive framework, these guidelines promise to enhance early detection, streamline reporting and investigation processes, and enforce staff accountability consistently across institutions. The focus on integrating advanced fraud detection technologies and conducting regular audits will further strengthen the internal controls of banks and NBFCs. Watch this space for our upcoming release to know more. Rohit Berry, Nikhil Bedi, K.V. Karthik, Nishkam Ojha, Soniya Mahajan, Amol Mhapankar, Rajat V #RBI #FraudRiskManagement #FinancialSector #Banking #FightingFraud #FraudDetection #MitigateFraudRisks #ForensicandFinancialCrime

One of the key components of a BSA/AML program is the risk assessment. Every financial institution should take a good look at their products and services and consider how those could potentially be used for money laundering and/or other types of illegal activity. So, in the case of your lending activities, how could someone use a loan to launder money through your bank via a loan? Once the risks are assessed, you can determine what mitigating factors may need to be employed to reduce the risk. For this reason, the risk assessment essentially drives your entire BSA/AML program. Kevin Edwards explains more in the video. Ready to learn more? JOIN US on April 11, 2024, for our webinar, “BSA/AML: Just for Lenders”. Featured topics include: • Bank Secrecy Act is Everyone’s Job! • Know Your Customer: Who, What, Where, When and Why • Identifying, Verifying and Certifying Beneficial Owners of Legal Entity Customers • Spotting Unusual Activity and Asking the Right Questions • Ongoing Customer Due Diligence and Updating the Customer Risk Profile • Enhanced Customer Due Diligence • Red Flags: Suspicious Activity, Money Laundering and Lending • Several Beneficial Owner Examples Included #BSA #AML #RiskAssessment #Bankers #CreditUnioins https://bit.ly/43myUsb

Let's take a quick Friday peek at the #OCC 2025 Bank Supervision Operating Plan to see what's in store for the New Year. When it comes to Credit Risk and the Allowance for Credit Losses The OCC’s 2025 supervision plan will target loan renewals, prioritizing reviews of borrowers’ financial stability to mitigate renewal and refinancing risks. Compliance teams should focus on closely evaluating credit profiles and financial capacities to preemptively address examiner concerns on renewal exposures. #OCC #Compliance #BankSupervision

Back in 2015, nearly two thirds of the 40 banks surveyed asserted that the 2016 deadline for BCBS 239 compliance was achievable. Now, 10 years later, compliance to the principles of effective risk aggregation and risk reporting (RDARR) remains elusive, with only 2 of 31 G-SIBs fully compliant. It is clear that banks have continued to underestimate the time, costs and resources required for effective BCBS 239 implementation. With regulators in Europe and the United Kingdom renewing their focus on reporting deficiencies in banking, BCBS 239 is once again a prominent regulatory topic for the industry. #BCBS239 #Banking #Regulation

FCA fines Metro Bank £16m for financial crime failings.Between June 2016 and December 2020, Metro failed to have the right systems and controls to adequately monitor over 60 million transactions, with a value of over £51 billion, for money laundering risks. #antimoneylaundering #antibribery #complianceofficers #boardofdirectors #duediligence #economiccrime #financialinstitutions #financialcrime #economiccrime #financialinstitutions #fraudmanagement #risk https://lnkd.in/eTV75vKd