Manual vs. Automated: A Regulator’s Perspective
Deciding whether to automate your BSA program
BSA Officers know that some exams will always go more smoothly than others. Perhaps you never know what you’re going to get, but one thing is for certain. Examiners will not hesitate to tell you their opinions. Whether or not to automate your BSA/AML program is no exception to this rule.
Your BSA/AML program can technically be manual, automated or a combination of both. Yet regulators will sometimes suggest that you think about automating in order to improve your efficiency. This is not uncommon. If you are managing your AML program manually (or using a system ineffectively) and a regulator sees room for improvement, they may tell you during an exam that you should consider automating.
If improvements are not made by the next exam, the regulator may have no choice but to cite this in a consent order.
What is causing the increased pressure from regulators?
For one, increased financial crime risks such as terrorist threats, cybercrime and virtual currencies are constantly keeping financial institutions on their toes. Furthermore, new developments in the AML world are causing increased scrutiny. Last year, the Panama Papers, the new CDD regulation and significant consent orders for high-profile institutions continued to put BSA/AML in the spotlight.
When a regulator expects you to start getting more done in less time, automation is one of their go-to suggestions. Regulators understand the importance of efficiency and effectiveness. Automation is one of the easiest ways to achieve both.
What should you do when your regulator suggests automaton?
Whether or not your regulator has suggested automation at this point, it may be helpful to start researching your options now. Consider a system with the ability to be tailored to your institution’s size and risk profile, an efficient case management system, robust reporting capabilities and more.
There are many BSA/AML solutions out there, but few with the flexibility and power of BAM+. Take it from these happy customers!
To learn about how BAM+ can benefit first-time automators in making their BSA/AML processes more efficient, request a demo here.
