Regulatory Compliance RoundUp for Banks & Credit Unions – September 2020

Last month reared several regulatory compliance updates in the banking and financial services industry. We’ve rounded up some key updates and how they will affect you and your financial institution going forward.

Joint Statement on BSA/AML Enforcement

The federal banking agencies announced a Joint Statement on Enforcement of Banks Secrecy Act/Anti-Money Laundering Requirements. This statement provides further transparency to their existing enforcement guidance on how financial institutions are evaluated when they fail to meet BSA/AML requirements. The following topics are addressed:

  • Isolated or technical violations/shortcomings are not generally considered issues that would result in an enforcement action
  • How the federal banking agencies evaluate violations of individual components (known as the five pillars) of the BSA/AML compliance program
  • How the customer due diligence regulations and recordkeeping requirements issued by the U.S. Department of the Treasury are incorporated as part of the internal individual components (pillars) compliance program
Regulatory compliance roundup - September 2020

Additional Resources:

Why Is This Important to Me and My Financial Institution?

It’s imperative that your staff is properly trained on AML & BSA, CDD/EDD, reports & record keeping. Ensuring that your staff has access to current and timely regulatory compliance training will reduce your institution’s risk. These compliance courses will also ensure your financial institution is in compliance with all pillars of the BSA/AML program, thereby avoiding violations.

OnCourse Learning offers a unique and broad combination of compliance training delivered in a format that is right for your employees – micro-learning, online self-paced, webinars, engaging video, and even a touch of humor! Here is a sample of an OnCourse Unplugged course on BSA/AML. Not only are these courses compliant, but they are also engaging and memorable.

FinCEN Adds FAQs on CDD Requirements

On August 3, 2020, the Financial Crimes Enforcement Network (FinCEN) issued new guidance in the form of three new FAQs regarding customer due diligence requirements for covered financial institutions. These three FAQs clarify the regulatory requirements related to:

  • Obtaining customer information
  • Establishing a customer risk profile
  • Performing ongoing monitoring

Why Is This Important to Me and My Financial Institution?

If you are concerned about your due diligence programs, it’s time to find a training program that can put your worries at ease. Finding regulatory and compliance courses on Customer Due Diligence/Enhanced Due Diligence (CDD/EDD) is key to adhering to the FinCen new guidance.

FinCEN Releases Advisory on COVID-19 Cybercrime

The Financial Crimes Enforcement Network (FinCEN) issued an advisory on COVID-19 Cybercrime to alert financial institutions to potential indicators of cybercrime and cyber-enabled crime observed during the COVID-19 pandemic. Many illicit actors are engaged in fraudulent schemes that exploit vulnerabilities created by the pandemic.

This advisory contains:

  • Descriptions of COVID-19-related malicious cyber activity and scams
  • COVID-19 associated financial red flag indicators
  • Information on reporting suspicious activity

This advisory is intended to aid financial institutions in detecting, preventing and reporting potential COVID19-related criminal activity. This advisory is based on FinCEN’s analysis of COVID-19-related information obtained from Bank Secrecy Act (BSA) data, open-source reporting and law enforcement partners. FinCEN will continue issuing COVID-19-related information to financial institutions to help enhance their efforts to detect, prevent and report suspected illicit activity on its website.

Why Is This Important to Me and My Financial Institution?

Many institutions are still operating with their staff working remotely. When working remotely, security is a top concern, especially due to the private information within the financial service industry. This advisory addresses the many ways cybercriminals are increasingly using the current pandemic to further phishing schemes, email compromise fraud and exploitation of remote applications.

Here’s another resource to help you combat cybercrime: 10 Security Best Practices When Working Remotely

Rachel Davis - Product Manager at OCL

About the Author

Rachel Davis

Product Manager at OnCourse Learning

Rachel Davis is the Product Manager of GRC and professional education for banks, credit unions, and non-bank financial services at OnCourse Learning. Rachel has worked in the financial services industry for 12 years and keeps up to date on financial industry hot topics. Rachel received her Bachelor of Arts in English Literature from Saint Louis University.

Rachel Davis - Product Manager at OCL

About the Author

Rachel Davis

Product Manager at OnCourse Learning

Rachel Davis is the Product Manager of GRC and professional education for banks, credit unions, and non-bank financial services at OnCourse Learning. Rachel has worked in the financial services industry for 12 years and keeps up to date on financial industry hot topics. Rachel received her Bachelor of Arts in English Literature from Saint Louis University.

By |2020-09-23T11:18:13-06:00September 13th, 2020|Bank, Credit Union, Financial Services|0 Comments

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