USAA, Part III: Better Risk Assessments 

USAA

Today we have one more look at that enforcement action banking regulators took against USAA last month, over the bank’s slow pace of compliance improvements. We’ve already reviewed changes to board oversight and compliance staffing levels that USAA needs to make. Next up: risk assessments.  Again, a quick recap. FinCEN and the Office of the…

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USAA, Part II: Staffing Levels and SARs

USAA

Today I want to circle back to that civil settlement that banking regulators struck with USAA last month, where they fined USAA a total of $140 million and imposed a raft of compliance program improvements that USAA needs to make double-quick. What do those demands tell us about how corporate compliance programs should operate? First,…

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USAA Settlement: Board-Level Reforms

USAA

Before we forget, compliance professionals should take a look at the enforcement action banking regulators imposed on USAA last week. It’s a fascinating look at how regulators are trying to pressure corporate boards and senior executives to take compliance risks more seriously. What happened? The Office of the Comptroller of the Currency and FinCEN hit…

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OCC Nudges Banks on Climate Change

GHG

One of the country’s top banking regulators has outlined five questions that large banks’ boards should be asking about climate change, with a notable nudge that the banks’ management teams “hopefully should be able to answer these questions with greater accuracy and confidence” within 12 months. In other words, get on with things, banking industry.…

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Credit Suisse and Risk Oversight Pains

Credit Suisse

Today in news that should surprise nobody: Credit Suisse is mulling whether to remove its chief risk and compliance officer, after months of the Swiss bank stumbling from one surprise scandal to another.  The executive in question, Lara Warner, has been in that combined risk and compliance role since Credit Suisse consolidated the two functions…

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India Moves to Bolster Bank CCOs

India

Regulators in India have adopted exhausting new criteria for the appointment of chief compliance officers in the banking sector there, and banks in that country have six months to confirm that their CCOs fit the profile or find a new one. The Reserve Bank of India (RBI), the country’s central bank and primary banking regulator,…

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Regulators Talk PEPs, Due Diligence

due diligence

Banking regulators have published fresh guidance about how financial firms should perform due diligence on “politically exposed persons” — stressing that you don’t need to take extra steps simply because a customer is a PEP, although banks do need to understand the higher corruption risks PEPs can pose.  The guidance is a joint statement from…

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Report Flags ‘Derisking Risk’ in Banking Sector

A new report from the Government Accountability Office says tough AML compliance obligations are contributing to a “derisking” wave in banks along the U.S.-Mexico border, which are closing branches and filing far more suspicious activity reports than in other parts of the country. The report examined 406 banks across the United States, including 115 along…

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Four Points on AML Compliance

compensation

Yesterday I had the good fortune to moderate a compliance forum on financial crime, hosted by RANE Network and Exiger. As you can imagine, anti-money laundering compliance is a huge concern for financial firms these days, so let me distill a few themes from the conversation here. Conflicting messages from regulators came up quite a…

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Tale From the Front Lines of Small Frauds

I have always been a believer in paying my credit card balances in full, every month. So when Mrs. Radical Compliance had a few minutes last Saturday afternoon, I was happy to see that she decided to do the same with a personal credit card she has, too. This credit card is affiliated with one of…

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