Mystery shopping firms go on espionage trip, help banks streamline work

From DNA –

“A growing tribe in the country - mystery shopping companies - are helping banks undertake covert audits on employees and branches to ensure that they strictly adhere to the rule book, prevent money laundering, and improve customer services.

'Mystery shoppers' pose as potential customers.

About 20% audits done by banks are focused exclusively on monitoring anti-money laundering (ALM). This number is expected to rise with banks stepping their antennae to intercept black money.”

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U.K. Financial Regulator in Talks with Banks over FIFA Probe

From The Wall Street Journal –

“The U.K. financial regulator is looking into weaknesses in anti-money laundering systems at U.K. banks, following a major investigation by U.S. authorities into alleged corruption by FIFA officials.

Harriett Baldwin, the Economic Secretary to the U.K. Treasury, said the Financial Conduct Authority is “discussing with banks whether the FIFA episode has highlighted weaknesses in their anti-money laundering systems and controls.”

She made the statement in a written response to a U.K. member of parliament.”

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Automation and AML/BSA Compliance

From JD Supra Business Advisor –

“The future of compliance includes technology solutions. Do not get me wrong – technology is not a panacea but it is an important strategy for leveraging resources. In the anti-corruption and sanctions compliance arenas, technology is an important tool, especially for third-party risk management and knowing who your business partners and customers are for sanctions compliance.

AML and Bank Secrecy Act compliance heavily depends on technology. That is a fact reflecting the reality of monitoring and auditing numerous customer relationships, correspondent banking and large numbers of transactions. In the absence of technology, banks and other financial institutions would be overwhelmed by labor costs. Automation is a key strategy for improving the accuracy and efficiency of an AML/BSA compliance program.”

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