Bullying within the ranks at a financial institution can occur in many situations, including managers directing such behavior toward internal control staff or auditors, banking veteran Ed O'Leary writes. Banks need to be "aggressive about rooting out those bullying behaviors or tendencies" in their culture, as "[t]hese can undo all our good work in the areas of morale and effective internal controls," O'Leary writes.
Insider fraud at banks often can be "traceable to a lack of internal controls," said Gottfried Leibbrandt, CEO of the Society for Worldwide Interbank Financial Telecommunication. The system of controls at SWIFT focuses not just on IT but also on people and processes, he said.
A report from the Financial Consumer Agency of Canada says banks in the country must heighten their controls and governance to protect adequately against retail banking culture's heavy focus on sales. "Operational management, compliance and risk management, internal audit, and human resources lack the frameworks needed to adequately address sales practices risk," the report says.
FSAC eWorkshop: Maximizing the Value of Audit Interviews Learning to effectively communicate and easing the concerns of the auditee is as important as an effective audit process. This course takes attendees through the interview process, providing leading practices for each step, including how to manage different personality types. June 25-28. Earn 8 CPE credits. Register now.
Companies are spending millions to comply with the EU's General Data Protection Regulation, which comes into effect May 25. "Big banks, fund companies, large insurance companies are all working through large GDPR compliance efforts," said Jeff Sanchez of Protiviti.
The Treasury Department's Financial Crimes Enforcement Network said the final version of its new customer due diligence rule has taken effect and that financial institutions must now begin complying with it. Among the new provisions is the requirement that financial firms identify and verify the identity of anyone who owns 25% or more of any legal entity and the identity of the person who controls the entity.
Among community banks surveyed by the Risk Management Association, 3% say they are ready for an upcoming standard for setting loan and lease losses. The current expected credit loss standard takes effect March 31, 2020, for institutions that report to the Securities and Exchange Commission.
This analysis by the Federal Reserve Bank of New York finds that, while banks have simplified operations since the financial crisis, they remain highly complex. Bank holding companies have retained tax havens within their organizational structures.
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Many customers have lost money to hackers and con artists who abuse payment service Zelle. Some banks have implemented Zelle "without any protections," leaving customers vulnerable, says financial-crime specialist Genevieve Gimbert.
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About 1.2 million banking jobs could be eliminated by 2030 as banks increase their use of artificial intelligence, according to a report by Autonomous Research. However, a separate study by Accenture finds that the industry may have a net gain in jobs because of AI.
FSAC brief: Maximizing internal audit's role through co-sourcing/outsourcing
Two chief audit executives and a provider discuss maximizing the value of internal audit through co-sourcing and outsourcing and share lessons learned that are applicable to organizations of all sizes. Read more.
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The Financial Services Audit Center is the premier resource for auditors in the financial-services industry, delivering low-cost, high-quality knowledge sharing as well as relevant reporting on trends, benchmarking and critical content. Learn more.
What, after all, has maintained the human race on this old globe despite all the calamities of nature and all the tragic failings of mankind, if not faith in new possibilities, and courage to advocate them.
Jane Addams, social activist
About the IIA Financial Services Audit Center (FSAC)
FSAC is an IIA specialty center for audit professionals in the banking, asset management, and insurance sectors. FSAC advances the
professional practice of auditing in the financial services industry through
education and training events,
professional guidance, and advocacy. Learn more about
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