An asset/liability model is critical to a financial institution’s success, and a rigorous approach is required to choose a model that is compliant with regulations and tailored to the institution’s specific needs. There is no one-size-fits-all approach to selecting an ALM model, so banks and credit unions should carefully evaluate their options to find one that suits their unique goals and reporting requirements.
The following checklists are meant to serve as a guide for evaluating ALM model approaches.
- Vendor background
- Model functionality
- Implementation and support
- Information security factors
Law enforcement partners have a unique advantage in understanding how to investigate financial crimes. After all, they are front line for following illicit transactions. Navigating complex AML investigations in particular is critical for a strong AML program. BSA officers and AML investigators will equally benefit from this AML Investigations checklist, developed by the Homeland Security Investigations Financial Crimes Unit in the effort to show how advancements in AML can improve the quality in transaction monitoring, and identify red flags for money laundering. The checklist can be used for initial training and for quality assurance for trained staff.
Download this checklist to learn:
- How to perform AML investigations to satisfy law enforcement
- Which professions that are higher risk for money laundering
- What unusual transactions look like and to be able to identify suspicious typologies
Financial institutions and regulators themselves are under increased scrutiny after the collapse of Silicon Valley Bank and Signature Bank of New York. And given risks in the current banking environment, regulators have pledged a tougher stance and more aggressive supervision.
Four areas likely to receive additional examiner focus during upcoming credit union and bank exams are:
- Interest rate risk
- Liquidity risk
- Credit risk
- Operational risk
Use this checklist to make sure you are on top of these key focus areas.
Commonly known as the CFPB 1071 Rule, upcoming requirements to be finalized in 2023 by the Consumer Financial Protection Bureau (CFPB) will represent the most significant effort of data collection and reporting for financial institutions in nearly 50 years.
This checklist provides lenders with seven steps to prepare for compliance with this new rule.
Check out other related resources:
Russia’s invasion of Ukraine has put sanctions and the often-overlooked sanctions department in the spotlight. Complying with the Office of Foreign Assets Control (OFAC) Russian sanctions can be tough in a rapidly changing environment, so a risk-based approach to AML efforts is critical.
Use this checklist of AML strategies to help sanctions staff stay updated and in compliance with Russian sanctions.
Download this Russian sanctions compliance checklist to learn:
- The importance of ongoing assessments of potential Russia sanctions-related risk.
- Tips for making the most of government sanctions notices and your OFAC compliance software
- Sanctions-related steps to include in your next audit and exam preparation
Be sure to watch our webinar regarding Russian sanctions and Russian sanctions compliance, Russian Sanctions: Impact, Implication and Best Practices.
The passing of the Anti-money Laundering Act of 2020 (AMLA) is the first important step in overhauling the Bank Secrecy Act, and what we know is that not all sections of the Act have been finalized. FinCEN has been charged with much of the development and implementation of regulations in support of AMLA, which will take time. It is more important than ever that financial institutions keep current on the progress and prepare for regulator questions — the sooner, the better. AML/CFT programs should align with new expectations and requirements as they roll out. For now, what should a financial institution do to prepare?
Download this checklist to see what you can do to be prepared:
Banks and credit unions face a variety of challenges today, whether it’s increased competition, changing customer expectations, or greater regulatory burdens, to name a few. Increasingly, financial institutions turn to automation and technology to combat these challenges. However, resistance from inside the organization can stall the best plans for adopting technology.
What can you do when the staff members you need to help ensure the technology ROI are unenthused or resistant to changing old processes and technologies? Change management, the people side of change, can help secure staff support and strong technology adoption.
Download this checklist to help you frame your financial institution’s vision and get the most buy-in possible when adopting new technologies.
Learn:
- The importance of clear communication that clarifies the “why” behind the technology adoption
- Why it’s essential to choose the right people at your institution to be involved with changing processes or technology
- How software change management efforts can benefit from staff feedback
Check out other change management resources:
- Webinar – Technology adoption: The “people” side of change
- Whitepaper – Leading a successful software implementation
Elder financial exploitation (EFE) and elder fraud continue to be serious crimes in the United States. EFE crimes are rising at an alarming rate. With no signs of dissipating, financial institutions are in a unique position to detect and report these crimes. With 1 in 10 individuals over the age of 60 falling victim to this crime, it is critical for financial institutions to know the behavioral and financial red flags of elder financial abuse and ramp up training programs.
Download this checklist to learn:
- Potential indicators of EFE identified by law enforcement, FinCEN and the National Council on Aging
- Financial and behavioral red flags
- FinCEN requested SAR additions
Detect and prevent EFE at your financial institution. View our webinar Elder Financial Exploitation – The Hidden Crime.
Financial institutions must structure their compliance programs to be risk-based to ensure that AML/CFT compliance programs are reasonably designed to meet regulatory requirements. Understanding its risk profile enables the institution to apply appropriate risk management processes to the BSA program to mitigate and manage risk and comply with AML/CFT regulatory requirements. Although each institution’s risk process will differ slightly, the best practice steps in this AML/CFT risk assessment checklist will enable your financial institution to understand and justify its risk-focused compliance program.
Please note: This is not an AML/CFT risk assessment template, because each institution’s process will differ.
Download this checklist to learn:
- How to identify risk categories for your unique financial institution
- Areas to consider when performing analysis for each identified risk category
- Tips to help identify inherent vs. residual risk for each risk category
- Things to review to help assess OFAC risk at your institution (may be included in BSA risk assessment or a standalone document)
Looking for assistance enhancing your AML/CFT program? Learn how Abrigo’s experienced AML Advisory Team can identify your BSA/AML risk and evaluate the effectiveness of the controls in place.
Read more about How to Conduct an Exam-Proof BSA/AML Risk Assessment in our recent blog post.