Banking is increasingly a global business and leading US Banks are beginning to generate serious amounts of revenue in non-US markets. A natural consequence of this revenue surge is not just the proliferation of newer financial products tailored to local markets but also increased integration between the commercial and investment banking operations.
Combine these trends with the regulatory mandates, including those in the USA PATRIOT Act , that require banks to put in effective compliance , regulatory pressures continue to increase on Wall Street. The PATRIOT ACT requires all FINRA member firms to develop and implement anti-money laundering (AML) compliance programs that comply with the Bank Secrecy Act (BSA).
AML legislation was first introduced in 2001 as part of the US Patriot Act. The legislation targets money laundering and mandates financial institutions help the authorities investigate any suspicious transactions occurring in their customer’s accounts.
Implementation and re-engineering AML processes has been a focus for banks, especially as they adopt technologies around enterprise middleware, cloud, analytics and Big Data.