Banks urged to boost third-party scrutiny amid AML crackdown
Three US regulators highlight deficiencies in banks’ due diligence on fintech partners
Lenders need to tighten up on how they manage third-party relationships as part of their anti-money laundering (AML) efforts, US regulators have warned, following a recent increase in enforcement actions targeting banks and fintech partnerships.
Lisa Arquette, deputy director of operational risk at the Federal Deposit Insurance Corporation (FDIC) said “volume” and “velocity” are two important red flags to consider. A significant surge in deposits from third parties to banks can pose risks by
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