Anti-Money Laundering/Bank Secrecy Act

Regulators are indicating a move to a more risk-focused exam of financial institutions with transactional testing based on risk.What are the hot topics and findings noted in the past year by the federal regulators?

AAMGraduatesFlyerforwebsite.pdf

Gramm-Leach-Bliley/SOX Compliance

The client selected Experis Infrastructure and Data Solutions (IDS) practice because of its extensive knowledge of regulatory mandates and remediation processes. A critical element of SOX requires the certification of user access to systems that access the company’s financial data. In conjunction with the client, the IDS team worked to develop, deploy and implement the attestation for user access to systems where fi nancial data resided. IDS worked to identify all individuals with access to financial data, confirmed they were authorized to do so and helped to ensure correct configuration for access.

Assessment and Strategy Efforts Fortune 500 Pharmeaceutical Distribution Company

Our client, a $50 billion dollar pharmaceutical distribution company, was in a state of extreme transition caused by regulatory changes to their global marketplace and a recent merger with a former competitor. Their IT department was challenged with supporting and prioritizing the needs of a merged company whose segments each had their own objectives, operating applications and business leaders. The merger had also necessitated the relocation of a major portion of IT’s function across the country.

A Global Kitchen Bath Products Manufacturer

When a global manufacturer won several contracts, they needed a significant number of experienced Mechanical, Electrical and Design Engineers to meet deadlines.

Data Warehousing and BI Reporting Energy Production, Marketing, and Trading

The client, an owner and manager of physical power generation plants, provides energy marketing, energy trading products, and services throughout the United States and Canada. In this extremely complex, dynamic industry, plant operations and trading positions must be continually managed to maximize profitability and mitigate risks. Accurate, timely information is critical to the company’s success and profits.

Business Analytics and SAS Practice: Major Financial Institution

A major financial institution knew that a better understanding of customer segments, behaviors, and needs was crucial to staying competitive. Realizing that they lacked the bandwidth to analyze their customer banking data internally and within a reasonable timeframe, they began a search for a business analytics firm partner.

CMS Implementation for Nonprofit Organization

Customized Authoring System with Global Computer Manufacturer

Financial Services and Shadow IT Fortune 500 Financial Company

A large Fortune 500 financial services company, had a data integration environment consisting of highly decentralized stores of information spread throughout the organization, developed over many years without a driving corporate information strategy. The problems originated when various individuals and business units began to build and deploy their own IT solutions, without leadership from the formal IT group.

Global Print Solutions Company

Challenge: The company had no automated mechanism for tracking the complex, non-standardized contracts or monthly invoice processes that incorporated the devices’ per-click or per-page billing.

High Performance Automotive Engineering Company

An internationally-renowned high performance automotive engineering company needed high performance engineering talent.

Industry Leading Web-Based Clinical Informatics University HealthSystem Consortium

The University HealthSystem Consortium (UHC) – an alliance of more than 100 academic medical centers and more than 200 of their affiliated hospitals – represents nearly 90% of the nation’s nonprofit academic medical centers. UHC’s mission is to advance knowledge, foster collaboration, and promote change to help consortium member organizations succeed in their respective markets. These member organizations receive access to many performance improvement products and services.

Office 2010 Application Assessment and Windows 7 Readiness

Experis leveraged a Senior Technical Manager from the Infrastructure and Data Solutions (IDS) practice to assess the current environment and provide recommendations. The existing Altiris and SCCM software inventory in combination with Microsoft Application Compatibility Toolkit were used to identify all software in the environment and prioritized according to the number of PCs on which each package was installed.

Process Improvement Custom Modules Leading Distribution Organization

Software innovation with Big Bottom Line Impact. Two process improvement modules were successfully implemented for this multi-million dollar distribution client utilizing JD Edwards OneWorld Software.

SAP Strategic Staffing: Big 4 IT Consulting Firm

Experis utilized its SAP Practice in numerous ways to resolve the firm’s sourcing needs. First, Experis’ dedicated SAP recruiting team was able to both quickly identify, technically screen and present multiple qualified candidates per role. Due to Experis’ extensive SAP knowledge and experience, the rapid sourcing enabled seamless resource integration. Second, Experis’ SAP practice was able to assist the firm via the involvement of Experis’ SAP Engagement Managers (EMs). By leveraging their skills and experience, Experis EMs were able to obtain the necessary information directly from the firm’s account managers providing more requirement clarity and accelerating the sourcing efforts.

Short-term Loan Industry Leader

One of the nation’s leaders in the short-term loan industry needed to replace their current intranet. They wanted to take advantage of Microsoft Office SharePoint Server (MOSS) 2007 capabilities including document management, collaboration, blogs, wikis, team sites, and Outlook 2007 integration. The client also sought to reinforce their new branding and to launch the intranet in conjunction with their headquarters move and consolidation. The overall objective was to create a solution that provided an effective means of communicating across the enterprise, increased productivity of key business units and secured access.

Top Wireless Giant

As one of the most highly regarded telecommunication organizations in the world, this client has multiple testing departments within its organization that supply quality control expertise for its billing and customer care application development and testing. These applications provide maximum customer service levels that are vital to day-to-day business operations.

Website Localization with Financial Services Company

World’s Leading SAP Solutions Provider

The world’s leading provider of SAP consulting solutions had a number of projects both ongoing and planned with one of the world’s leading telecommunications companies. This telecommunications client was positioned to embark upon a very strategic, complicated, and high-profi le SAP BW 3.5 to SAP BI 7.0 upgrade project. Based on the strong level of trust, partnered approach, and proven SAP experience Experis was selected to drive the BI upgrade from a project management perspective as well as provide highly skilled SAP resources.

Fair and Responsible Banking: Customer Care is Good for Business

With regulators focusing on compliance risk assessment and management, financial institutions are finding their greatest compliance risk resides in consumer protection regulations. And while navigating regulations and related guidance from multiple agencies can be challenging, the financial industry is challenged all the more by competition from emerging digital and FinTech providers.

CFPB Consumer Overdraft Report

The CFPB interviewed consumers regarding overdraft practices and experiences, capturing qualitative information regarding consumer thoughts, intentions and expectations about overdraft programs.

Fair and Responsible Lending: Managing the Risk of Consumer Harm

Banking regulatory agencies, applying rules and regulations according to CFPB oversight, have aligned their expectations for compliance with one another and with the rules. Simple enough: read the rules, develop processes and controls to manage compliance with the rules, test those processes and controls, and adjust as necessary. Section 1002(13) of the Dodd-Frank Act prescribes “fair, equitable, and non-discriminatory access to credit for consumers,” but does not define “responsible lending.” And what about unwritten rules? The agencies have spent a good deal of time and energy on assessing whether the institutions they supervise offer and service credit products in a fair and responsible manner, even as they acknowledge prescriptions and prohibitions under federal regulations do not always neatly align with supervisory expectations.

Compliance Risk Management: Adding Value through Compliance Audit

With the recent shift in regulatory supervision toward a focus on the risk of consumer harm in banking practices in addition to numerous regulatory changes on the horizon, financial services organizations are seeking value in controls and processes across the three lines of defense. Most especially, compliance internal audit has become one function management and directors are demanding to see greater value.

The Fifth Pillar of an Anti-Money Laundering

On May 11, 2016 the Department of Treasury Financial Crimes Enforcement Network issued the Customer Due Diligence (CDD) Requirements for Financial Institutions under the Bank Secrecy Act. This final rule is intended to strengthen and clarify CDD requirements as well as, add a new requirement to identify and verify the beneficial owners of legal entity customers, subject to certain exclusions and exemptions. Covered Financial Institutions, as defined below, must comply with this rule by May 11, 2018.

Guidance for Managing Third-Party Risk

On January 25, 2017 the Office of the Comptroller of the Currency (OCC) issued a set of exam procedures to guide regulatory examinations of third-party risk management (TPRM) programs in the banks the agency supervises.

Year-End Readiness Considerations

Year-end continues to be a challenge for most organizations. However, it doesn’t have to be if you plan accordingly. Consider these following actions to improve your year-end readiness.

2016 Year-End Planner

Faced with additional reporting responsibilities, fewer staff, increased scrutiny and tight timeframes, most organizations find their personnel stretched to their limits at year-end.

Guidance on using Mobile Financial Services for Payment Processing Activities

On April 29, 2016 the FFIEC published Appendix E, Mobile Financial Services (MFS) which is aimed at providing guidance for financial services institutions using MFS as part of their payment processing activities. The Appendix was created to address comments on the lack of technical detail and specific focus on MFS in existing FFIEC guidelines. Appendix E focuses on identifying and managing risks associated with MFS.

Guidance on Customer Information Program Requirements for Issuers of Prepaid Cards

On March 21, 2016, an interagency guidance was issued on applying Customer Information Program (CIP) requirements to issuers of prepaid cards. This guidance is aimed at issuing banks as it relates to the CIP rules of Section 326 of the USA PATRIOT Act for certain “open-loop” prepaid cards. Examples of “open-loop” cards include cards used by employers to provide wages and pre-tax flexible spending for healthcare expenses.

Liquidity Risk Management - Latest Trends and Challenges

Recent market events have increased the level of regulatory scrutiny over liquidity risk management. As a result, many financial institutions are working diligently to further improve their processes and internal controls. Deficiencies cited by banks include: insufficient holdings of liquid assets, funding risky or illiquid asset portfolios with potentially volatile short-term liabilities, lack of meaningful cash flow projections, adequacy of the liquidity contingency plan, data quality issues, integrated technology platforms and reporting capabilities.

OCC Issues Fiscal 2016 Operating Plan

The OCC is continuing its efforts to enhance the safety and soundness of the banking system. Understanding the agency's expectations and being prepared for an examination is in the best interests of all banking organizations.

Integrating Data Analytics into the Three Lines of Defense

When organizations manage compliance risk with effective internal controls, they realize cost and efficiency improvements. The Three Lines of Defense that comprise effective compliance management programs help to align and enhance compliance controls and coordinate efforts related to risks and controls. Data analytics can further enhance compliance program effectiveness and can be applied to each of the defense lines.

Preparing for Changes in Flood Insurance Rules

In the last several years, there have been numerous changes to the flood insurance requirements for residential real estate located in designated flood areas. In October 2014, the prudential regulators issued a final rule intended to update lending practices related to flood insurance requirements on loans secured by real estate located in special flood hazard areas (SFHAs). The final rules make numerous changes to the requirements for real estate lending.

June Financial Institution Compliance Update

TILA/RESPA Integrated Disclosure (TRID) Rules: Preparing for the Changes

April 2015 Financial Institution Compliance Update

Learn more about the compliance with Regulation Z and TILA.

February 2015 Financial Institution Compliance Update

The report identifies a number of observations related to the performance of large, midsize, and community banks during 2014 and the points of emphasis that the OCC will focus on in 2015 as part of their examinations and other oversight activities. In the newsletter, we share OCC’s key areas of concern, their priorities for the next 12 months and guidelines to help your business prepare for the examinations.

Financial Institution Compliance Update

November 4, 2014 - Vendor Risk Management: Guidance for managing third-party relationships

Auditing Strategic Risks: Turning Risk into Opportunity

To remain relevant beyond an ongoing assurance function, internal audit departments that transform their focus more heavily toward value creation as opposed to risk aversion will be viewed by their executive counterparts as equal contributors in the business, rather than a necessary corporate governance function that is a “cost of doing business.”

Delaware “New” VDA Program: Enrollment Window Closing

Experis Finance wants to make you aware that the enrollment window is closing on the unclaimed property “new” Voluntary Disclosure Program (“VDA Program”) that the Delaware Secretary of State (not the Department of Finance) launched. The VDA Program offers specific incentives and a window of opportunity for companies holding unclaimed property (“Holders”) owed to another (apparent “Owner”) to come forward to report unclaimed property liabilities on the Holder’s books and records in order to comply with Delaware’s Abandoned Property Law.

FASB Accounting Standards Update

On January 16, 2014, FASB issued ASU 2014-02 describing a simplified, alternative approach for eligible private companies to account for goodwill.

Financial Institution Compliance Update

June 4, 2014 - Issue highlights: CFPB Guidance: Make consumer protection a priority and avoid costly risks...

FATCA Checklist for Multinational Companies

On July 1st 2014 the Foreign Account Tax Compliance Act (FATCA) will go into effect, requiring a 30% U.S. withholding on certain U.S. source income unless an entity complies with FATCA or is exempt. This checklist provides an overview of how some of the steps multinational companies should consider in order to become FATCA compliant.

Financial Institution Compliance Update

March 4, 2014 - Issue highlights: Regulation Z: What you need to know about Finance Charge Calculations and How to Avoid Costly Liability...

Solution Profile - SAP Development Capabilities.pdf

Financial Institution Compliance Update

January 14, 2013 - Issue highlights: Volker Rule: Overview of requirements and what steps banking entities must take to ensure compliance...

FATCA Compliance Alert

We are a leader in consulting and outsourcing tax services with deep experience in foreign tax issues, including tax withholding and information return reporting. Our services include an assessment of your company’s FATCA obligation, and the steps needed to become compliant.

Financial Institution Compliance Update

November 5, 2013 - Issue highlights: What's New with the Mortgage Servicing Rules?

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Tax Alert: IRS Issues Final “Repairs and Maintenance” Regulations

Sept. 13, 2013, the IRS released final “repairs and maintenance” regulations providing guidance regarding the deduction and capitalization of expenditures for tangible property. The final regulations elaborate on the current regulations and will affect all taxpayers that acquire, produce, or improve tangible property. The final regulations also discuss accounting for and retirement of depreciable property (Section 167) and accounting for property under MACRS other than general asset accounts (Section 168).

Regulatory Mandates for Foreclosure Practices

Both the enforcement actions and the more general directives by each of the regulatory agencies reflect renewed focus on compliance management and performance. Financial institutions will need to take a more holistic approach to managing risks associated with mortgage loan servicing. It will be critical to integrate business processes with risk and compliance management efforts.

Are You Ready to Adopt IFRS?

Many organizations are evaluating how a transition to IFRS will affect them. The questions below will help you assess your readiness for a transition to IFRS.

The Outsourcing Relationship

Effective service provider engagements involve up-front planning and active, ongoing management.