Bank Compliance

Banks play an important role in controlling terrorist activity. Many new rules and regulations have been issued by government agencies that pertain to banks and other financial institutions. The aim is to deny terrorists access to the international financial system and to destroy their ability to raise funds. Bank compliance is required to achieve this goal.

Requirements for Bank Compliance

Banks are required to verify the identity of all new customers. They must maintain a database of all accounts for at least five years after account closure. The database must be screened against government watch lists to check for suspected terrorists or identity thieves. Bank compliance also requires a written policy outlining the Customer Identification Program. Many other mandates with future compliance deadlines add to the burden of financial institutions.

Customers must be notified about identity verification requirements. When they open an account, they may be asked for extra information or documents to prove their identity. Employees should receive adequate training to produce a successful program. Attitude is very important. Ideally, a culture of sacrificing for the good of the country should be established. Documentation, monitoring, analyzing, and responding are all important factors.

Bank compliance may be accomplished easily through use of the latest technology. Software solutions are available to document and track data. Web-based programs allow instant results and link to valuable tools such as ID verification and background checking. Most technology options are expandable and have the ability to be customized.