Ask Reggi Your Question Now
Can you summarize Risks Associated with Money Laundering and Terrorist Financing > Electronic Banking (2014)?
Risks Associated with Money Laundering and Terrorist Financing > Electronic Banking (2014)
Short Summary
This document, titled ‘Electronic Banking (2014)’, focuses on assessing the adequacy of a bank’s systems to manage the risks associated with electronic banking customers, including Remote Deposit Capture (RDC) activity. It emphasizes the importance of effective monitoring and reporting systems in managing these risks. The document highlights that e-banking systems, which provide electronic delivery of banking products to customers, include various channels such as automated teller machine (ATM) transactions, online account opening, internet banking transactions, and telephone banking. It emphasizes the need for banks to recognize e-banking as a potentially higher-risk area and develop adequate policies, procedures, and processes for customer identification and monitoring. The document also discusses risk factors associated with e-banking, such as the difficulty in verifying the identity of customers who open accounts without face-to-face contact, the potential use of e-banking by front companies or unknown third parties, and the instantaneous nature of transactions. It provides risk mitigation measures for banks, including establishing BSA/AML monitoring, identification, and reporting for unusual and suspicious activities, as well as implementing customer authentication methods and transaction limits. The document also covers the risks and risk mitigation measures associated with Remote Deposit Capture (RDC) services, which allow customers to scan and transmit check or monetary instrument images to the bank. Overall, this document serves as a guide for banks and financial institutions to effectively manage the risks associated with electronic banking and Remote Deposit Capture (RDC) activities.
Whom does it apply to?
Banks and financial institutions engaged in electronic banking activities
What does it govern?
Risks associated with electronic banking (e-banking) customers, including Remote Deposit Capture (RDC) activity, and management's ability to implement effective monitoring and reporting systems
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No specific penalties are mentioned.
Jurisdiction
U.S. Federal Government