Business Case: BSA/AML for Regional Banks

Change is a constant in any business, including the AML/BSA programs of regional banks. While Sanctions and Watch list screening remains a high priority, institutions are making considerable changes to their Customer Due Diligence (CDD) programs:

  • Banks are taking a more practical, risk-based approach to PEP screening, focusing their efforts on PEP information that would materially impact the decision of the institution. Recent guidance from the Wolfsberg Group supports such a risk based approach.
  • Today, negative media has proven to be a critical component of a bank’s BSA/AML program, proving an effective indicator of early risk. While many banks have utilized a broad spectrum of negative media coverage when screening their high-risk portfolios, the trend is now to screen the entire portfolio against a narrow spectrum of key adverse media risk categories.

These screening trends are a sign of the times, as banks step back and ask simple and practical questions about the risks they face.