The Financial Industry Regulatory Authority has released guidance on what broker-dealers must do to comply with anti-money-laundering requirements. The regulatory notice gives examples of red flags that require financial professionals to file suspicious-activity reports.
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Financial firms and institutions expect material risk when the switch to alternative benchmarks from Libor occurs in 2021, according to Moody's Investors Service. "Most banks and large [nonbank financial institutions] are active in working groups with regulators and industry associations, ensuring sharing of information among market participants and consistent integration of standards into contracts," Moody's says.
A Barclays analyst says US lenders are keeping impaired credit card loans on their books while selling higher-rated loans to investors as asset-backed securities. Barclays says it currently is not alarmed by the practice, although it could leave banks rather than investors exposed to the impact of a downturn.
Regulatory reform in the US is taking aim at bank stress tests. Indiana University professor Matthew Turk outlines the key criticisms of the existing structure, including that the current tests fail to capture systemic risk.
Recent compliance guidelines from the Treasury Department's Office of Foreign Assets Control are meant to help banks create effective sanctions compliance programs. Having a risk-based approach is a key area of focus.
Financial firms' compliance budgets are being cut at a time when some companies already aren't allocating sufficient resources to compliance, says Pete Driscoll, director of the Securities and Exchange Commission's Office of Compliance Inspections and Examinations. "We cannot underscore enough a firm's continued need to assess whether its compliance program has adequate resources to support its compliance function," he says.
FSAC Report: Management Metrics & Audit Planning This supplement to the 2019 North American Pulse of Internal Audit provides insights for CAEs in financial services. FSAC conducted a separate analysis on the responses from financial services participants. This report focuses on internal audit management metrics and audit planning. Read more.
Ten members of a cybercrime network are charged with stealing millions in the 2016 release of malware that allegedly helped them transfer money out of victims' accounts. The US and five other nations worked together on the investigation -- a level of international cooperation that's vital to combating fraud of this scope, said Craig Newman, a partner at law firm Patterson Belknap Webb & Tyler.
Banking, e-commerce and dating apps are the likeliest targets for online fraud, says a report by Adjust, which rejected more than 269 million fraudulent installs last year. Dating was also the app category with the fifth fastest growth, with mid-core games taking the lead.
US banks are struggling to onboard and retain top compliance professionals who specialize in financial rules, an Office of the Comptroller of the Currency report says. Banks are increasingly looking to artificial intelligence and other technologies to make their compliance departments more efficient, the report says.
Cassian Jae is joined by Chris Paulison from Grant Thornton to discuss technology and the internal audit workforce of the future, the impact on the financial services industry and the talent that audit organizations are seeking. Listen in to this AuditCast.
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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
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