Financial Crime World

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Banking Regulatory Compliance: A Comprehensive Guide

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Overview

This guide provides an overview of banking regulatory compliance, focusing on Anti-Money Laundering (AML), cybersecurity, and financial record-keeping laws and regulations.

Banking Regulatory Compliance

Suspicious Activity Reporting

Banks should have policies, processes, and procedures for completing, filing, and retaining SARs (Suspicious Activity Reports). Additionally, banks must share SAR information as necessary.

  • Written down
  • Approved by the board of directors
  • Noted in the board minutes

Cybersecurity and Financial Record-Keeping Laws and Regulations

Gramm-Leach Bliley Act (Reg P)

Requires banks to tell customers about their privacy practices and explain their right to opt out if they don’t want information shared with third parties.

Sarbanes-Oxley Act (SOX)

Imposes stringent record-keeping requirements for public companies related to the secure storage and management of certain electronic financial records.

Payment Card Industry Data Security Standard (PCI DSS)

Requires banks to limit cardholder information and data access to as few employees as possible, implement administrative controls that track account activity, and monitor, log, and audit certain activities.

23 NYCRR 500

Applies to banks under the supervision of the New York Department of Financial Services (NYDFS) and requires banks to:

  • Assess their specific risk profile
  • Design a program that addresses its risks in a robust fashion
  • File an annual certification detailing compliance efforts

EU-General Data Protection Regulation (GDPR)

Applies to all enterprises that process data about EU individuals, whether manually or through automated processes. The GDPR highlights various security guidelines for both data processors and data controllers.

U.S. Federal Laws Applicable to Banks

A long list of laws and regulations designed to provide consumer safeguards, ensure transparency, and fairness within the banking industry includes:

  • Americans with Disabilities Act (ADA)
  • Bank Service Company Act
  • Community Reinvestment Act
  • Consumer Financial Protection Act
  • Credit Card Accountability Responsibility and Disclosure Act
  • Dodd-Frank Wall Street Reform and Consumer Protection Act
  • Economic Growth, Regulatory Relief and Consumer Protection Act
  • Electronic Fund Transfer Act (Reg E)
  • Equal Credit Opportunity Act (Reg B)
  • Expedited Funds Availability Act (Reg CC)
  • Fair and Accurate Credit Transactions Act
  • Fair Credit Reporting Act (Reg V)
  • Fair Debt Collection Practices Act
  • Fair Housing Act
  • Federal Reserve Act
  • Flood Disaster Protection Act
  • Garnishment Rule
  • Home Mortgage Disclosure Act (Reg C)
  • Homeowners’ Loan Act
  • Military Lending Act
  • NACHA International ACH Transaction Rule
  • Real Estate Settlement Procedures Act
  • Right to Financial Privacy Act
  • Servicemembers Civil Relief Act
  • Telephone Consumer Protections Act
  • Truth in Lending Act (Reg Z)
  • Truth in Savings Act (Reg DD)
  • Unlawful Internet Gambling Act (Reg GG)

Conclusion

Compliance is a top priority due to the increasing frequency and sophistication of financial crimes and cybercrimes. A regulatory compliance checklist can serve as a practical tool for navigating compliance priorities, ensuring program adequacy, and identifying critical issues.