Do What You Say and Say What You Do
This Simple Yet Critical Maxim is the Key to Keeping Customers and Regulators Satisfied in 2012
By Lori Moore, CRCM, Director of Compliance

On the surface, the start of 2012 doesn’t feel that much different than the start of 2011 - the economic outlook is still murky; repercussions of the Dodd-Frank Act and other regulatory changes continue to loom; and profitability for many financial institutions remains elusive.  However, opportunities await in every challenge, including these.  The trick is understanding what those opportunities are and capitalizing on them.  The biggest opportunity out there is reestablishing trust with customers, many of whom still feel badly burned from the financial and housing crises of ’08 and the still lingering negative effects.  Reestablishing trust with customers requires a commitment to “do what you say and say what you do.” Although that may seem a hefty and potentially costly task, the fact of the matter is making and following through on that commitment will not only improve your customer relations, it will also lead to stronger regulatory compliance performance and higher profitability.
       

BSA/AML: Assessing Your Institution’s Risk
In addition to reporting and recordkeeping requirements, the BSA requires all financial institutions to implement a program that is reasonably designed to identify suspicious activity and prevent the laundering of funds derived from illegal activity. To be successful, the program must contain procedures that are based on an assessment of the institution’s overall AML risk profile. This webinar will help your institution understand how to identify and assess its BSA/AML risks and to develop an effective program in accordance with the specific requirements set forth under the Bank Secrecy Act.

Speakers:  
Lori Moore, CRCM, Director of Compliance
Ledra Finley, CAMS, BSA/AML and Information Security Compliance Consultant

Date:  2/2/2012

Time:  3:00PM ET to 4:00PM ET

Question: Why are accounts for non-government organizations and charities high-risk?

Answer:  The flow of funds into and out of these types of accounts can be complex and are therefore, susceptible to abuse by money launderers and terrorists.  For example, large dollar donations can be given anonymously, making the source of funds difficult to track.  In addition, charitable organizations are typically designed to serve the needs and/or interest of certain groups, communities, and causes so the legitimacy of the transactions can also be difficult to ascertain.   Guidelines have been issued by the U.S. Treasury to assist charities in adopting practices to reduce the risk of terrorist financing or abuse, which can also serve as a reference to financial institutions in the effort to mitigate and manage the related risk.

Got a question on a tricky regulation? We want to hear from you. Submit your question and an expert will answer it in a future issue.



The Six Worst Data Breaches of 2011
Personally Identifiable Information Breaches Rank Highest
DataBreaches.net

If you’re looking for the biggest breaches of the year in terms of numbers affected, you can find them over on DataLossDB.org or in others’ reviews. Certainly there were some really big breaches this year, but those were not necessarily the worst. Here's a short list of the year’s worst breaches involving personally identifiable information.


SAR Referral Leads to the Discovery of a $100 Million Mortgage Fraud and Foreclosure Scheme
10-month Investigation Leads to Indictment
FinCEN.gov

Investigators uncovered a large-scale mortgage fraud scheme that originated from a SAR filed on a subject, who turned out to be a victim of the fraud scheme. In addition to filing the SAR, the filing institution also notified the district attorney's office, which opened the investigation and eventually uncovered the fraud.

A financial institution filed the SAR to report that tax liens had been forged. However upon investigation, the district attorney's office determined that the subject of the SAR was in fact a victim of fraud, in part by suspects who forged documents related to the tax liens. As the investigation continued, the district attorney's office uncovered the mortgage fraud that led to the indictments. Read more... 

5 LinkedIn Apps For Power Networking
The Majority of Linkedin Apps are Undiscovered Gems
By Amber Mac, FastCompany.com