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Bending the Rules
Helping
disaster victims while staying compliant with CIP regulations
by Bill Koch, Editor, The Compliance Advisor
As
we watched hurricanes Katrina and Rita displace so many families and disrupt so
many lives, our first thought was not, “Wow, how is this going to affect the customer
identification policies at my financial institution?” Of course, our first
thoughts were with the victims and their safety.
But
as the dust settles, it’s not only the community banks of the Gulf region that have
to work with customers displaced by the storms. The victims of Katrina and Rita
have fanned out across the country, looking for jobs, homes and bank accounts.
[
Read More ... ]
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Learning from disaster
Trey Sullivan |
As hurricanes Rita and Katrina devastated the Gulf coast,
many families wondered what they would do in the wake of such a disaster. Many
banks wondered how they would deal with a client base who suddenly had little
or no documentation. How would they stay compliant while still helping their
customers in a time of need?
This month’s
feature article provides solid information on
how banks anywhere in the country can adapt their CIP rules to deal with
clients dealing with disaster.
Last
month, we asked for your best practices for email retention.
Your responses
shared practical insights into dealing with this growing monster. This month, we
ask if you provide your customers with copies of their credit reports. If you do,
what are the risks? We
need your best advice.
To keep this
material relevant to you, I invite you to become actively involved with this
newsletter. Please send ideas for articles you’d like to see and let me know if
the topics being covered are relevant to the issues your institution
faces. Take our brief survey and you’ll be registered for an Apple iPod™.
If you would like to unsubscribe from this newsletter, please click on link at
the bottom of the page.
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AGENCIES ISSUE GUIDANCE ON
INTERNET AUTHENTICATION
Single-factor
authentication methodologies may not provide sufficient protection for
Internet-based financial services, the Federal Financial Institutions
Examination Council said in guidance released recently. The document —
Authentication in an Internet Banking Environment — describes
enhanced authentication methods that regulators expect banks to use when
authenticating the identity of customers using on-line products and services.
Financial institutions will be expected to
achieve compliance with the guidance no later than year-end 2006. "The
FFIEC agencies consider single-factor authentication, when used as the only
control mechanism, to be inadequate for high-risk transactions involving access
to customer information or the movement of funds to other parties," said
an FDIC financial letter conveying the FFIEC document. Read the FFIEC guidance.
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Complete our 1-minute reader survey and you could win
an Apple iPod. |
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Effective Strategies for Fraud Prevention
Learn
the strategies and procedures that should be established to help protect your
institution from potential fraud. These tactics, which include new account,
account monitoring, CIP and information security procedures, can be used to not
only prevent fraudulent activity, but also to help keep sensitive customer data
safe.
Thursday, November 10, 2005
2:00 PM
to 3:00 PM EDT
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for this complimentary Webinar today. |
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Last Issue's Dilemma:
Struggling with email retention
I'm overwhelmed. I work
for a progressive community bank that has had on-line banking for several
years. We are now using on-line customer service to aid our Internet customers.
We're in a cosmopolitan, high-tech city, so we have quite a large base of
customers that use our on-line services.
The problem I have is
complying with regulations about email retention. It has been a nightmare to
try and maintain records of every email that passes just between our reps and
customers, to say nothing of the emails between our employees. I also don’t
understand how long different types of communications must be retained because
the regulations are so confusing.
Should we reduce the
scope of our on-line services to just eliminate some of the email
correspondences, making it easier for us to comply with email retention
regulations? Or is there a way to keep offering on-line
customer service while still staying compliant?
— Joyce M., Compliance Officer,
credit union in California
Read the best advice from readers
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This Issue's Dilemma:
Rating
your credit policies
Historically, our bank has not given copies of
credit bureau reports to customers. With the increase in identity theft all
over the country, more and more customers are demanding to see their credit
reports for their own protection.
Aware of this pressure — and wanting to be
customer-focused — some of our loan officers have become vocal about this
policy. We are now re-evaluating the liabilities of providing credit bureau
reports to customers.
I wonder what risks we will run into
if we change this policy. Should we please our customers and give them copies of their
credit reports or should we stick with our current policy?
— Daniel Stockman, Compliance Officer
Can You Help?
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Fraud and AML
Monitoring: Stay ahead of the bad guys |
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Change Management:
Survive and thrive |
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Government
Regulations: Keep up with your changing environment |
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