The USA Patriot Act and Sarbanes-Oxley have forever altered the currently complicated planet of regulatory compliance in banking. Adhering to these a lot more stringent regulations does not have to conflict with nurturing superior consumer relations or enhancing consumer retention. Rather, you should present compliance as a service to your clients and your tellers, platform specialists and contact center personnel should be taught to communicate that message in their every day operate. Bear in mind that the principal purpose clients place their funds in banks is for safekeeping. There are a lot of locations to invest funds with larger prices of return than banks, but none is as safe. By letting your clients know how and why you are complying with banking regulations, you are primarily promoting safety.

Sales, Service and Safety Bankers should stroll a hard line balancing approaches of attracting clients into their branches by developing a friendly atmosphere and meeting overall performance specifications of safety and compliance regulations. Add to this mix the competitors of on line banking and economic institutions have a true challenge on their hands.

In a day and age when clients have restricted time to run bank errands, the comfort and accessibility of on line banking is quite attractive. To keep competitive, bank branches should industry themselves as the neighborhood bank exactly where clients do enterprise amongst close friends. The hard activity is fostering this warm, fuzzy feeling although asking to confirm the identification of a extended-term consumer or explaining the goal of filing a Currency Transaction Report (CTR).

Preparing Your Tellers is Crucial Luckily, giving consumer-friendly service that leads to retention and new-item sales does not have to undermine bank safety and compliance. Requesting identification, reviewing account or transaction activity or verifying application information and facts must not be communicated as overly intrusive, or as an implication of mistrust – but rather as a safeguard in spot to defend consumer assets, identity and economic history. Thorough teller instruction prepares your tellers to deal with each and every transaction accurately, rapidly and courteously although by no means losing sight of safety procedures. The crucial is to educate your front-line employees about how to present the added benefits of compliance procedures to make certain that they are comfy when dealing with their clients and to clarify that improved safety measures reduced the threat to the consumer. Teaching your tellers that following compliance procedures is in each the customer's and the Bank's finest interest offers them the help they want when a consumer balks at handing more than identification or complains when asked to adhere to a distinct bank policy. A common protocol, when enforced confidently, guarantees bank stability and reassures clients with the feeling of asset security as properly as fraud and identity protection. Promoting compliance as a service must be supported with documentation that particulars the added benefits of the new regulations and the measures that the Bank is taking to comply with these new laws.


Dangers of Non- Compliance Lapses in appropriate compliance impose pricey dangers to banks. In September 2007, a massive economic institution was beneath investigation for violating the Bank Secrecy Act. The Bank was forced to spend a total of $31.six million in civil funds penalties – $10 million to the Division of Treasury, and $21.six million to the Division of Justice. This issued a Deferred Prosecution Agreement and the accompanying multi-million forfeiture order in connection with charges that the Bank failed to keep an powerful anti-funds laundering system.

The Final Word Educating tellers and other front-line personnel on compliance is the finest defense a bank has in identifying suspicious or fraudulent activities although avoiding regulatory threat. Teaching how to communicate these specifications to clients is the finest offense a bank has in giving top quality service and a constructive consumer knowledge.