Articles

USA PATRIOT Act Insurance Companies Fraud Banks Credit Unions Business Intelligence OFAC Identity Fraud Financial Institutions Technology Solutions Identity Verification Compliance Technology USA PATRIOT Act Section 326 USA PATRIOT Act Section 314 A Bank Compliance Broker Dealer Compliance Background Checks Compliance Management USA PATRIOT Act Compliance OFAC Compliance Fraud Protection Identity Information Regulatory Mandates OFAC Regulations Compliance Solutions Integrated Compliance Solutions Bank Fraud Protection Background Verifications Employee Background Checks People Background Checks Prevent Money Laundering Prevent Identity Fraud Prevent Identity Theft Regulatory Mandate Compliance Fraud Protection Solutions Screen Customers Customer Database Screening More Resources About USA PATRIOT Act

USA PATRIOT Act

Regulatory Mandates

by Jill Morrison

Financial institutions are increasingly subjected to regulatory mandates. OFAC and the USA PATRIOT Act have imposed new regulations. In addition, numerous other groups are making demands and deadlines which create major challenges. In particular, areas related to privacy, security, and internal controls are being emphasized.

Examples of Regulatory Mandates

The Gramm-Leach-Bliley Act has data protection requirements. The Sarbanes-Oxley Act requires controls over financial reporting and auditing practices. The USA PATRIOT Act requires identity verification of all new customers. The HIPAA security requirements pertain to all institutions that handle health information, including banks. In addition, financial institutions must prepare for audits from groups such as the Office of Thrift Supervision, Office of Currency Control, and Federal Deposit Insurance Corporation.

The burden of regulatory mandates may seem overwhelming. Compliance must include written policies, monitoring, and reporting. Failure to comply has serious consequences. Financial institutions may face ratings downgrades, fines, and harm to their reputation. In most cases, organizations have a period of time before a deadline occurs. However, it is wise to begin early as it may prove less costly in the long run.

Solutions are available and consultants are ready to help with technology. Software solutions can fill many of the requirements for documentation and reporting. The programs will provide 24 hour automated service for easy compliance with regulatory mandates. Dedicated effort should be considered an ongoing process that will strengthen a financial institution.

Get all Background Checks articles via