Category: Banking & Fin Best Practices

Third Party Sender(TPS)-Nested TPS- Roles & Responsibilities as per NACHA rule

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When it comes to payment processing, there are many parties involved in the transaction. One of these parties is the third-party sender. However, there are also nested third-party senders that can further complicate matters. This article will showcase the differences between third-party senders and nested third-party senders. We will understand the responsibilities, obligations and warranties Read more about Third Party Sender(TPS)-Nested TPS- Roles & Responsibilities as per NACHA rule[…]

SAFE Act Policy & Procedure Contents

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The Secure and Fair Enforcement for Mortgage Licensing Act of 2008(SAFE Act) was enacted on July 30, 2008, and mandates a nationwide licensing and registration system for residential mortgage loan originators (MLOs). The SAFE Act prohibits individuals from engaging in the business of a residential mortgage loan originator without first obtaining and maintaining annually Mortgage Read more about SAFE Act Policy & Procedure Contents[…]

Business Continuity Risk Assessment – For Banks

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It is always preferable to conduct business continuity risk assessment While performing the roundtable test of the financial institution’s business continuity plan. Below are 4 steps to risk assessment. Identify Disaster Scenarios — List the disaster scenarios to be included in the assessment. Few sample disaster scenarios are listed below. Fire near Institution. Possible explosion Read more about Business Continuity Risk Assessment – For Banks[…]

Purchasing card Risks and Controls

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Purchasing cards are cards which Provide an easy method of payment to a vendor by the end users at the Point of Purchase or Point of Sale. This is almost similar to consumer credit cards which are branded by banks and merchants pay a processing fees but it simplifies the purchasing process.   The benefits are   Read more about Purchasing card Risks and Controls[…]

Basel II Operational risk – best practices

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What is Operational Risk ? The Basel II accord on banking supervision defined operational risk as the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events. Legal risk would be included in this definition according to the Basel committee, but not strategic or reputational risk Operational Risk Read more about Basel II Operational risk – best practices[…]

EBA Guidelines on Internal Governance

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In the European Banking Authority’s (EBA) new Guidelines on Internal Governance the aim is to enhance and consolidate supervisory expectations and improve the implementation of internal governance arrangements for individual institutions and the banking system as a whole It has 6 key sections . 1 -Corporate Structure and Organization The management body should ensure that Read more about EBA Guidelines on Internal Governance[…]

Virtual currencies, gold, money laundering, regulations etc

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Now EU is mulling ban on virtual currencies and particularly bit coins as it seems there are more chances of irregularities which might happen and antisocial elements can use this route to beat the current regulations. “It’s imperative to move quickly on this issue,” Chantal Hughes, a spokeswoman for Financial Services Commissioner Michel Barnier, said Read more about Virtual currencies, gold, money laundering, regulations etc[…]

The Bank Secrecy Act – What It Enforces ? Best Practices how to comply ?

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In 1970, the Currency and Foreign Transactions Reporting Act was passed by US Congress. It is commonly known as the Bank Secrecy Act or BSA. The Act requires US financial institutions to assist US government agencies in detecting and preventing money laundering.Specifically, the BSA requires financial institutions to:    Keep records of cash purchases of negotiable Read more about The Bank Secrecy Act – What It Enforces ? Best Practices how to comply ?[…]

Suspicious Activity Reports and filing Requirements

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The BSA also requires every US national bank to file a Suspicious Activity Report (SAR) when they detect certain known or suspected violations of federal law or suspicious transactions related to a money laundering activity or a violation of the BSA. A SAR filing is required for any potential crimes: Involving insider abuse regardless of Read more about Suspicious Activity Reports and filing Requirements[…]