In a recent American Bankers Association webinar, two Abrigo clients shared their implementation strategies and advice for financial institutions who have yet to adopt the current expected credit loss (CECL) standard. The two banks vary in asset size, which in turn affects how they approached the transition to CECL and their implementation strategy for the 2023 deadline. This whitepaper reports the best practices and CECL transition guidance shared by the two bankers during the ABA panel webinar.

Download to learn:

• Two bankers’ journeys from incurred loss to CECL
• Lessons learned during the CECL transition
• The use of quantitative or qualitative models for economic forecasting
• Advice for methodology selection and model validation

Financial institutions of all sizes face increased uncertainty in the current environment. Stress testing can be a prudent way for a bank or credit union to identify its key vulnerabilities to market forces and assess how to manage those risks effectively should they emerge. In this whitepaper, uncover how stress testing can help financial institutions manage capital levels and credit risk.

Download to learn:

• An outline of the process and best practices for stress testing
• OCC guidance and elements of an effective stress test
• How to use aspects of the CECL model to develop robust portfolio stress tests

While providing financial services to cannabis-related businesses (CRBs) can be risky, it can also be advantageous. There is a substantial need for financial services by the cannabis industry, and there is a significant opportunity for banks and credit unions who choose to work with CRBs. It requires financial institutions to understand the industry’s nuances, closely monitor ongoing guidance and regulation changes, adequately safeguard the institution, and train staff accordingly. Even if cannabis is not legal in the financial institution’s state, customers in neighboring states still pose a risk. As more states continue legalizing cannabis, the onus is on financial institutions to complete thorough due diligence and know the members that cross state lines for services.

Ultimately, it is at the discretion of each financial institution on how they want to handle banking these businesses, knowing the state and federal laws. Understand the risks and learn how to stay compliant while banking CRBs.

Download this whitepaper to learn:

• Distinctions between the terms cannabis, marijuana, and hemp
• Six key areas related to CRBs to consider in your risk assessments
• How to stay compliant, should your financial institution decide to engage in relationships with CRBs

Providing financial services to cannabis-related businesses can feel like navigating through a haze of constantly changing regulations. View on our-demand webinar, Navigating Regulatory Haze: Banking Cannabis-Related Businesses and Managing Risk for additional insight on how to manage regulatory compliance and maintain a risk-based program.

Fraudulent new account applications by cybercriminals and fraudsters have been surging for quite some time. Through identity theft or synthetic identities (combinations of fictitious and real information, such as name, SSN, and other PII to create new identities), threat actors are applying for new accounts at record levels. This trend has partly been driven by the proliferation of compromised PII and financial account information circulating in the Dark Web, and by Pandemic Unemployment Assistance and SBA PPP fraud, which have been extremely popular during the COVID-19 pandemic. This whitepaper takes a look “behind the scenes” to understand how threat actors create new accounts at scale.

Download this whitepaper to learn:

• A profile of a Russian cybercriminal gang that is dedicated to registering accounts across several countries and financial institutions on a massive scale
• Techniques and procedures these threat actors use to compile identities and register accounts
• Ways institutions can combat new account fraud during the account opening process

Q6 Cyber’s cutting-edge technology monitors the “Digital Underground” – a vast universe of online sites, marketplaces, communities, and forums where cybercriminals live – to proactively identify and contain emerging threats for your institution. Learn more about Q6 Cyber and Abrigo.

Curious about the latest tactics and tools and highlight noteworthy recent shifts in the underground cybercriminal ecosystem? View our webinar, Cybercriminals, Fraudsters, and the Dark Web – What to Watch for in 2022.

Financial institutions still face a multitude of challenges related to inflation, labor shortages, supply-side disruptions, and the list goes on. These factors also have a tremendous impact on how financial institutions approach asset/liability management (ALM). This whitepaper offers five concrete suggestions for ALM best practices to achieve increased profitability while minimizing inherent risk.

Download to Learn:

• Tips for creating a dynamic capital plan
• Key assumptions to analyze in an ALM model
• Regulatory expectations for risk assessment
• How to enhance ALCO and the board’s confidence in the ALM model results

The topic of inflation and rate hikes is almost impossible to avoid these days. Most financial institutions believe that interest rates rising will provide opportunities for higher yields, however, will this translate into improved margins? This whitepaper expands upon the expectations vs. realities for rising rate cycles and offers approaches financial institutions can consider for stronger results.

Download to learn:

• The outlook for elevated inflation
• 4 key lessons for managing interest rate changes
• The influence of competitive realities
• How to ensure consistent returns to meet market needs

Learn how to navigate mergers/acquisitions and AML compliance.

Mergers and acquisitions (M & A) are alive and well in the financial services industry. With institution consolidations on the rise, it’s essential to conduct proper due diligence. A compliant Anti-Money Laundering (AML) program can determine the success of a merger or acquisition. When two financial institutions come together, each AML and fraud compliance function will need to be consolidated. Integrating programs creates challenges for Bank Secrecy Act (BSA) Officers responsible for developing an integration plan while ensuring ongoing compliance with existing day-to-day tasks. In this whitepaper, discover why a compliant BSA/AML program is important in the consolidation of institutions. Understanding the mission-critical analysis, best practices, and risks of BSA/AML compliance – no matter what side of the transaction you are on – can determine the success of the transaction and assist in avoiding penalties.

Download this whitepaper to learn:

• The current outlook on financial institution M & A for 2022
• Critical steps to consider when developing a consolidation plan and making decisions around how to build your combined AML compliance team
• How compliance professionals are positioned to protect and prepare the institution for any potential risk the consolidation brings

If M&A seems daunting, or if you are short-staffed, Abrigo Advisory Services can help. Learn more about how we can assist during this transition.

Detecting and reporting terrorist financing has been one of the more significant roles of financial crime professionals since the historic events of September 11, 2001. This concern has recently been emphasized with the release of the FinCEN AML and CFT National Priorities, which included terrorist financing (both international and domestic terrorism financing) as one of the eight priorities for the U.S.

The FinCEN priorities include the financing of international terrorism and domestic terrorism as a priority, citing the intelligence community’s assessment of domestic terrorism as a significantly evolving and elevated threat to our nation. Extremists from various groups, both from the left and from the right, can be equally dangerous. As with the September 11, 2001, attacks, hindsight into the financial transactions for such an event should be a learning tool in the FinCrime industry. During suspicious activity monitoring for domestic terrorism financing, investigators must be trained on the methodology and ideology of extremists.

Download this whitepaper to learn:

• How the FBI defines domestic terrorism and categorization of domestic terrorism threat categories
• Efforts to combat domestic terrorism threats, including the White House National Security Council’s four-pillar system
• What financial institutions can do to combat domestic terrorism financing

With the accompanying regulations not yet written, what should financial institutions take away from the published FinCEN Priorities now? Watch our on-demand webinar, FinCEN AML/CFT Priorities: What Do They Mean for Your Institution?

Community banks historically have had an advantage in small business lending over large institutions due to their focus on relationship-based lending. However, the competitive landscape and changing customer expectations have left many institutions struggling to maintain their hallmark community focus while profitably growing the small business portfolio. In this whitepaper, learn how relationship-focused lending coupled with digitalized loan origination and onboarding can help community banks recover market share and seize a substantial growth opportunity.

Download to learn: 

• Who the major players are in the small business lending landscape
• The overall market changes in small business lending over the last decade
• How technology can help regain market share for earnings growth

Financial institutions are currently faced with challenges as it relates to their capital ratios due to inflated balance sheets from COVID-19-related growth and a declining net interest margin. As you look at your institution’s current capital levels and plans for future capital needs, it is a good time to review the goals of capital planning and how to develop a complete and effective capital plan at your institution.

Download to learn:

• How capital planning fits with the overall planning process
• Components of effective capital planning
• Best practices to ensure long-term success of your strategic plan