Governments increasingly are casting banks in the role of the global economy's first line of defense against money laundering and other financial activities that support criminals, terorrists and rogue nations. And regulators are enforcing that view by levying increasingly high fines against banks that have been used by criminals and terrorists (or the nations that support them). Financial institutions have no choice but to comply, and so they need to build functions and risk-based processes that will reduce their risk of being used by the bad guys.
Peter Brooke and Christine Moran, managing directors in the governance, risk and regulation team at FTI Consulting, have proposed several ways that financial institutions can do well by doing good: implementing policies that will reduce their risk of running afoul of the regulators and help de-fund criminals and terrorists. We worked with them to help publish this article on Banking.com.