Financial Crime World

Banking Regulatory Compliance Checklist

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Overview

This comprehensive checklist covers various laws, regulations, and guidelines applicable to banks in the United States. It includes 23 NYCRR 500, Gramm-Leach Bliley Act (Reg P), Sarbanes-Oxley Act (SOX), Payment Card Industry Data Security Standard (PCI DSS), EU-General Data Protection Regulation (GDPR), Americans with Disabilities Act (ADA), and many others.

Anti-Money Laundering (AML) Compliance

Key Points

  • AML compliance is a critical aspect of banking.
  • Banks must have a risk-based approach to managing AML risks.

AML Practices

  • Know Your Customer (KYC): Verify customer identities and understand their business relationships.
  • Customer Due Diligence (CDD): Establish customer information, including:
    • Name
    • Address
    • Date of birth
    • Identification number
    • Beneficial ownership information for legal entity clients
    • Nature of the business in which a customer is involved
  • Politically Exposed Person (PEP) Status: Determine whether customers are PEPs and apply appropriate measures such as Enhanced Due Diligence (EDD).
  • Sanctions Screening: Ensure that banks do not conduct business or process financial transactions with sanctioned individuals, entities, and countries/geographic regions.
  • Transaction Monitoring: Identify unusual and suspicious transactions that may be indicative of money laundering, terrorist financing, and other financial crimes.

Reporting Requirements

  • Suspicious Activity Reporting: Complete, file, and retain suspicious activity reports (SARs) and supporting documentation as well as share SAR information as necessary and permissible by law.
  • Documentation: Write down, approve by the board of directors, and note in the board minutes all policies, procedures, and processes related to the AML compliance program.

Cybersecurity and Financial Record-Keeping Laws

Key Regulations

  • Gramm-Leach Bliley Act (Reg P): Requires banks to provide customers with privacy notices.
  • Sarbanes-Oxley Act (SOX): Imposes requirements on public companies regarding internal controls and audit procedures.
  • Payment Card Industry Data Security Standard (PCI DSS): A set of standards required for handling credit card information.
  • EU-General Data Protection Regulation (GDPR): Requires organizations to protect personal data and inform individuals about the processing of their personal data.
  • Americans with Disabilities Act (ADA): Prohibits discrimination on the basis of disability in employment, public services, transportation, and telecommunications.

Conclusion

These regulations are essential for banks to ensure they are complying with the laws and providing transparency and fairness within the banking industry.