Financial institutions face a growing number of threats from criminals and groups that seek to misuse the U.S. financial system. Drug dealers seek to launder illicit profits, terrorists try to use the financial system to fund future attacks, and cybercriminals look for ways to hack into bank accounts to steal money or private customer information.
The risks are very real, and so are the consequences for financial institutions that fail to have strong AML training as part of their compliance programs to prevent money laundering and other financial abuses.
In a new thought leadership article by OnCourse Learning Financial Services, Omar Magana, a senior compliance professional with Chartwell Compliance, discusses the potential risks for financial institutions who fail to adequately invest in AML compliance and training. Those risks include the potential for regulatory penalties and fines costing thousands or even millions of dollars, theft of customer account or personal information, and damage to the company’s reputation.
“The consequences of having untrained staff can lead to regulatory violations and employees lacking the necessary skills to deter the misuse of the financial institution’s products and services,” Magana said in the article.
Magana also addresses some of the relevant laws and regulations governing AML compliance, including the Bank Secrecy Act and the USA Patriot Act, and the article also provides an example of an actual case of a financial institution that faced regulatory penalties for noncompliance. The article concludes with Magana outlining some of the key benefits for financial institutions to have strong AML compliance and training programs as part of a larger culture of compliance.
To download a copy of the full article, click here.
Leave A Comment