 Guadalupe National Bank's Success Story |
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WHO
Guadalupe National Bank, Kerrville, TX
De novo bank, $59 million assets
Betty Hughey, Senior Vice President of Operations, BSA Compliance Officer, Cashier & Chief Financial Officer
WHEN
June 2008 - Present
WHAT
When de novo bank Guadalupe National Bank (Kerrville, Texas) opened in March 2008, they saw an opportunity to use automation and outsourced transaction monitoring to fully comply with Bank Secrecy Act/Anti-Money Laundering (BSA/AML) regulations while enabling the bank’s BSA compliance officer to focus on those customers or transactions that pose the highest risk.
Using Banker’s Toolbox’s BSA ExpressTM, a software plus service bundle, the bank has minimized their risk of exposure to illegal transactions while enhancing the reporting required by regulations.
The Challenge
Kerrville, Texas-based Guadalupe National Bank opened in March 2008. The bank knew to be competitive out of the gate that it needed to embrace automation in all of its processes to maximize the efficiency of its small staff. One area in which the bank sought automation was in compliance with BSA/AML regulations, which requires all financial institutions to monitor and report on suspicious cash transactions.
“It is impossible to manually monitor cash transactions and see the patterns you need to detect criminal activity,” said Betty Hughey, senior vice president of Operations and BSA compliance officer for Guadalupe National Bank. “We knew we wanted to start with automation from the beginning, and we were also open to utilizing outsourced services to help us maximize the value of the software systems we selected.”
The bank wanted a solution that would take into account the limited amount of time and resources available among the bank’s staff, while still emphasizing the importance of BSA. As with any de novo bank starting from ground zero, the bank had an overwhelming number of duties, but fewer staff to get everything done.
“In addition to my responsibilities as Senior Vice President of Operations, BSA Compliance Officer, and Cashier, I simultaneously managed a teller drawer and functions of the chief financial officer,” Hughey said. “Though the task of BSA Compliance would have been made simpler with automation alone, outsourced monitoring was even more appealing because it let me offset the workload without the expense and hassle of hiring new staff.”
The Solution
At the suggestion of the bank’s core processor, Fidelity Information Services BancPac®, Guadalupe National Bank researched BSA/AML solutions from Banker’s Toolbox. They selected the BAM™ solution, which is an automated system for collecting, analyzing and reporting on cash transactions in compliance with BSA/AML. The de novo bank chose the convenient option of running BAM through FIS’s Thomson, GA data center, rather than installing software in-house. The bank went a step further and decided to use Banker’s Toolbox’s BSA Express™ service, which provides outsourced monitoring of transactions, reporting of suspicious activity and risk analysis.
BSA Express combines the capabilities of BAM with outsourced monitoring services by a team of highly experienced, in-house banking consultants at Banker’s Toolbox. The service includes comprehensive transaction monitoring, case investigation, risk assessments and exam support. Unlike other BSA compliance outsourcing programs, BSA Express does not require institutions to upload sensitive customer data to an external destination, retaining BAM as a resource available in-house or through reputable data center partners.
“Using BSA Express is like having experienced, certified BSA/AML experts on my staff and at my call at anytime,” Hughey said. “BSA Express helps me focus on customers and transactions that pose the greatest risk without sacrificing the quality of our BSA/AML program.”
The Result
Hughey said the biggest benefit to using BAM with the BSA Express service is in removing headaches involved with maintaining compliance without sacrificing her own time or the quality of the compliance.
“All of our transactions outside of money orders are pulled directly from the core system into BAM,” Hughey said. “From there, the BSA experts at Banker’s Toolbox monitor the transactions and report to me on the patterns or customers that may need further investigation.”
Guadalupe National Bank said that with Banker’s Toolbox monitoring transactions and assembling Suspicious Activity Reports, the bank is able to be proactive in regards to suspicious activity. Hughey said the reports they provide give her information on which accounts to watch for, and she is able to prepare tellers with the information they need to be diligent. She also said BAM pulls transactions from multiple sources – tellers, wires, checks, ATM and ACH – which helps the bank see patterns that would have been missed using traditional spreadsheets.
Most importantly, Hughey said BAM and BSA Express have helped the bank pass their safety and soundness exam earlier this year.
“BAM documents the results of our investigations and the decisions we make on suspicious accounts or transactions,” said Hughey. “This is great for our exam and audits, because we can log not only how often we review files, but what decisions were made and why. We can perform quality due diligence that will give us confidence as our bank continues to grow.”
About Guadalupe National Bank
Community, integrity and service are a few of the core principles that guided the formation of Guadalupe National Bank (Kerrville, Texas). It began as a vision shared by the organizers who wanted to create a local bank that was truly a part of the community. They envisioned a locally owned and managed bank that would make a difference in the local economy as well as the lives of the customers it serves. Today, with the support of the shareholders, individuals, and business owners in the community, that vision has become a reality. Guadalupe National Bank is a full service bank offering a wide range of products and services. Like the larger banks, the bank is able to offer the latest technology and up-to-date products that customers have come to expect. For more information, visit the bank’s Web site at www.guadalupenational.com.
About Banker’s Toolbox, Inc.
North Hollywood, Calif.-based Banker’s Toolbox, Inc., helps banks manage risk and streamline compliance examinations. The company’s product suite consists of affordable solutions for money laundering detection and reporting, risk management through fraud and kiting prevention, secure wire processing automation, and commercial real estate loan portfolio risk assessment. The Banker’s Toolbox team is a unique combination of seasoned bankers and information technology consultants who specialize in designing, developing and implementing risk management solutions nationwide while providing unparalleled customer service to regional and community banks. For more information, visit the company’s Web site at www.bankerstoolbox.com. |
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