Services & Programs

BSA / AML Compliance

For most institutions, BSA/AML compliance has been a continually expanding activity over the last decade, piling on additional processing requirements for front and back office functions.  On-boarding customers has nearly devolved into an interrogation-style of information-gathering to comply with Customer Information Program (CIP) policies.  Risks associated with non-compliance and the expanded emphasis on BSA/AML compliance has forced organizations to increase resources, most notably in the BSA units.

Regulations impact customers and staff alike; spending additional time and energy for compliance with little or no perceived value for the customer. Given the impact AML compliance has had on customers, staff, and ultimately profits, coordinated solutions are required to affect all aspects inside and outside the Compliance (BSA) unit.

The LoBue Group Approach

The LoBue Group has been improving customer service and back office process for over 35 years, with compliance as a critical input of the design.  Regulatory requirements, efficiency and customer experience objectives are never mutually exclusive in a LoBue design process.  As a matter of fact, they are co-dependencies in achieving a healthy and compliant organization. An effective BSA / AML program requires a comprehensive approach, ensuring the customer experience is considered, with intelligent back-office monitoring and relevant training.

There are four key aspects to a complete BSA/AML enhancement program

  • Business Intelligence - Advanced analytics to pin-point areas of risk on which to focus
  • Banking Staff - Provide necessary training and an efficient process for front and back office staff 
  • Customer Experience - Meet process design requirements to enhance the customer experience
  • Regulations - Ensure compliance throughout the organization, meeting requirements at many intervals in the customer life-cycle

LoBue combines end-to-end process design with advanced analytics results in an effective and comprehensive AML solution. An effective approach must demonstrate compliance while simultaneously meeting business goals. LoBue combines experienced business process expertise with ACAMS certified compliance experts to meet co-existing goals of efficiency, service and compliance. 

A comprehensive program requires excellent process design and business intelligence to manage performance, and an efficient BSA group to oversee it.

Business Intelligence - AML Analytics

There is an abundance of data associated with AML compliance.  Actually, the abundance of data is what might constitute a challenge; being able to sift through and find suspicious transactions in a timely manner, or being able to find relevant information across multiple data sets.

The use of advanced analytics is expanding quickly and becoming a key component of future BSA/AML compliance programs.  Advanced analytic tools improve methods for transaction monitoring and reduce the amount of effort required for compliance, specifically for processing SAR's.  Further, the insights serve to strengthen policy, improve employee training, and provide a continual feedback loop.

Process Design

To be compliant, an AML program needs to run throughout the servicing lifecycle, not just exist at a single point, and process design is a critical part.  CIP and Know Your Customer (KYC) policies and procedures are put into practice at the time of client on-boarding and continue with every customer interaction.  There are many customer touch-points where opportunities exist to capture necessary information to be compliant and build on the customer relationship. Effective process design incorporates customer, staff, and compliance requirements. 

BSA / AML Group Effectiveness

Many BSA departments have expanded over the years in order to comply with regulatory requirements, although many haven't improved their results.  While underlying process best-practices are helpful, a constantly evolving BSA / AML program is necessary. Customers and the industries in which they work vary from bank to bank, and country to country. The approach to identifying and reporting suspicious activities is not a one-size-fits-all solution.  BSA departments, like all others, need to continually find ways to effectively do more with less; improving compliance across the entire organization while improving the process and staffing models used to manage the BSA function.  The more efficient the BSA group is in dealing with required oversight and reporting activities, the more it can improve overall compliance with targeted training, process design and other activities outside the BSA group itself.

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