What a difference a day makes. Until September 16, the US financial industry had only been talking about a two-day settlement cycle. Only a preliminary roadmap of the stepping stones to T+2 had been completed, indicating that at least 30 operational workflows will be affected, requiring rule, behavioral and technology changes. On that day Securities and Exchange Commission […]
Fighting Financial Crime: Making Due With the Omnibus Account
A bank or broker-dealer opens an account in its name with a securities depository. One of its customers — a fund manager, broker-dealer or other firm — is involved with either money laundering activities or violating regulations involving sanctions against an individual, country or corporation. Even worse, one of their clients did the dirty deed. […]
Registered Investment Advisers: FinCEN Says Welcome to the AML Party
Registered investment advisers may have it a little easier than their banking brethren when complying with long-awaited anti-money laundering rules just proposed by the US Treasury’s Financial Crimes Enforcement Network (FinCEN), but they shouldn’t feel too relieved. They will still have to go through most of the same hoops to ensure their clients are not engaged in […]
AML Transaction Monitoring: Five Steps to Getting it Right
If you think your anti-money laundering transaction monitoring software isn’t working correctly, what should you do? a) blame your vendor and replace the software b) blame your analysts and tell them to work harder c) review your data feeds and inputs d) throw your hands up and think you can’t do anything e) doubt your […]
Recent SEC Compliance Fines: What to Watch Out For
Four recent enforcement actions by the US Securities and Exchange Commission each highlight a different area of concern by the regulatory agency and each sends a loud and clear message in hefty fines and professional punishment. We think they offer valuable lessons to readers of FinOps Report on how to steer clear of legal landmines. Conflict […]
Transfer Agents: Preventing Fraud a Delicate Balancing Act
The work of stock transfer agents may require a lot of detail management, as well as complex interactions with issuers, shareholders and various intermediaries, but the field isn’t likely to be associated with investor fraud. That is, until now. Two commissioners at the US Securities and Exchange Commission are urging the agency to take a harder look […]
AML Compliance: Big Job Market, Big Hurdles
For those attracted to a career of hunting down criminals, law enforcement isn’t the only choice. Finance has always been both a juicy target and a obvious tool for white-collar criminals so Wall Street’s focus on anti-money laundering compliance has been years in the making, but it wasn’t until after the 2008 to 2009 financial crisis that regulators intensified […]
Reporting Security-Based Swaps: Dissent Brews with SEC
Security-based swaps might comprise a small fraction of the entire multi-trillion dollar over-the-counter derivatives market, but that’s little solace to operations, IT and regulatory specialists who will eventually have to follow the Securities and Exchange Commission’s rules on reporting transactions in these contracts to a swap data repository (SDR). Just who must do the reporting, […]
When Buying Cybersecurity Insurance: Caveat Emptor
The theft of personal details of millions of individuals in a U.S. government database might sound shocking, but it really isn’t given the latest stream of well-publicized hacking events in the retail, financial and insurance industries. Neiman Marcus, eBay, Home Depot, JP Morgan Chase, Sony and Anthem are among the high-profile casualties. Given that a cyber […]
New Mutual Fund Reporting Rules: New Operational Angst
If US mutual funds and other registered investment funds feel relief they have been spared from the cumbersome rules for systemically important financial institutions, they may not for much longer. Hefty new disclosure requirements are on the horizon, if the US Securities and Exchange Commission has its way. Although the SEC is seeking industry input before […]