Saving Money in Your Compliance Department

By Nancy Lake, CAMS-Audit, CAMS-FCI
Director of Compliance Anchor

“Time is money” was a phrase used by Benjamin Franklin in Advice to a Young Tradesman, Written by an Old One. Yet today it is still true, as we all know too well in the Banking arena.

So departments that can function more efficiently and save valuable time will add to your institution’s bottom line. Not surprisingly, the Compliance Department is one of the main departments where costs seem to keep growing every year. Institutions spend more and more valuable time on keeping up with the regulations, implementing them, reviewing policies, procedures and a host of other tasks that strain staffing and budget limitations.

Every Compliance or BSA Officer that I speak to is struggling under a mound of work and constantly changing regulations. Besides Same Day ACH and the new HMDA changes, BSA personnel are working to implement the Fifth Pillar of BSA that includes the requirement to identify the beneficial owners of accounts. The actual implementation date is May 11, 2018. However, with software changes, policies, procedures, risk assessments, and training to accomplish prior to that date, financial institutions need to be taking a proactive approach.

So practically, how can your financial institution save money by saving time? Specifically, in relation to the beneficial ownership rule, Compliance Anchor has leveraged the expertise of all of our monthly subscribers by splitting our BSA Veterans’ Venue group up into the following teams:

  • Risk Assessment
  • Policy/Gap Analysis
  • Project Plan
  •  Training

Each member bank chose a team and participated in that team to create that particular item. Then each final product was shared with the entire group so each individual financial institution could adapt them to their specific institution. That prevented everyone from recreating the same wheel. The next phase has begun where we have split up the group based on their software vendors. That way those institutions can share the burden of implementing the steps and procedures of their specific software and work through any issues together. This will save participants valuable time and your institution money.

If you haven’t joined Compliance Anchor monthly services, why not do so today!