According to results from the American Bankers Association's (ABA's) 2006 Community Bank Competitiveness Survey, 87% of respondents found BSA regulation to be more difficult to comply with, as compared to even SOX. This stress is showing across financial institutions based in or outside USA, by the frequency and quantum of penalties being imposed by the regulators. There are many factors that are possibly leading up to this trend:

		Increasing money laundering concerns with newly emerging scenarios
		Heightened terrorist financing concerns through charity initiatives and organizations
		Intensified regulatory compliance processes enforced by uncompromising regulators
		Manual or at best hybrid compliance processes with over-reliance on human expertise for suspicious activity detection from large volumes of financial transactions
		Rigidity of technology solutions to tackle moving target of Anti-Money Laundering & Combating Financing of Terrorism
		IT Solutions spewing out large number of alerts/cases during transactional monitoring and even larger false-positives during customer on-boarding phases
		Multi-country foot-print of global financial institutions having difficulty in orchestrating enterprise-wide world-wide regulatory compliance
		Lack of widely available operational and tactical BSA compliance man-power resources

When regulatory, prosecution and reputation risks are increasing by the day, due to multitude of constantly evolving regulations, against the back-drop of above challenges, it may be worth-while to consider offshoring of the BSA compliance process at least partially, that are backed by skilled compliance professionals and technology solutions based out of India.

We have built BSA compliance processes over a technology platform that extends from your office as a compliance head to your strategic compliance team in USA, to half-way around the world at our BSA compliance center in India. We have trained a pool of skilled compliance professionals to undertake tactical and operational compliance tail-end functions, while you still maintain the control over the strategic compliance head-end in USA, including linkages with regulators and FinCEN. Customer transactional data from your core systems along with their demographic profile (with the customer name masked out) is encrypted and is made to flow through our technology pipes all the way to our compliance team in a secure manner for due diligence, SAR report creation, false-positive handling etc.

With such a compliance value chain with in-built feature of taking care of the customer secrecy would allow your financial institution to save money in recruiting and retaining tactical and operational staff. There are of course added benefits of round-the-clock compliance function ticking to save days towards filing SARs, conducting extensive look-backs and supporting analysis & due diligence. By outsourcing these voluminous operational compliance tasks, you are able to focus on essential analytic and strategic responsibilities on truly the high risk cases that your regulator truly wants you to focus on.

To know more about Compliance Process Off-shoring (CPO) and how it could benefit your institution to combat dynamic scenario of money laundering and terrorist financing, please contact us.

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