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Can you summarize Risks Associated with Money Laundering and Terrorist Financing > Third-Party Payment Processors (2014)?
Risks Associated with Money Laundering and Terrorist Financing > Third-Party Payment Processors (2014)
Short Summary
This document, issued by the Federal Financial Institutions Examination Council (FFIEC), provides guidance on assessing the adequacy of a bank’s systems to manage the risks associated with its relationships with third-party payment processors. It applies to banks that offer account services to these processors. The document highlights the risks associated with processors, such as money laundering, identity theft, fraud schemes, and other illicit transactions. It emphasizes the importance of implementing policies, procedures, and processes to address these risks, including conducting background checks, verifying merchant identities, and monitoring processor relationships for unusual or suspicious activities. The document also emphasizes the need for effective account opening and due diligence procedures, as well as ongoing monitoring and reporting systems. Overall, the document aims to help banks mitigate the risks associated with third-party payment processors and ensure compliance with relevant regulations.
Whom does it apply to?
Banks offering account services to third-party payment processors
What does it govern?
Risks associated with relationships with third-party payment processors
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
U.S. Federal Government