Legal Solutions | USA
Outsourcing certain services to third-party entities may provide financial institutions with convenience, efficiency and cost-savings - but increasing regulatory reform demands stricter controls for the management of external KYC risks. More than ever, financial firms are being held accountable for the compliance failure of their vendors.
Third-party vendors, partners and contractors in areas ranging from private banking, correspondent banking, money transmittal services, stock brokerage, and offshoring are just a small sample of the risk categories financial firms must address with renewed diligence.
Enhanced terrorism financing and money laundering threats require financial firms to be unwavering in their diligence inspections of prospective third parties. But, before risk assessment can begin, banks need accurate and unbiased data about vendor and subcontractor entities. This data can only be culled through an independent inquiry that assesses the experience, reputation, operating history, stated goals, risk management practices, insurance coverage, regulatory interactions and other factors that impact an entity’s risk score...
What you'll take away:
To ensure you are maintaining compliant with ever-changing regulations, download this article to learn how to assess third party vendors and instill a proper risk scoring model for your organization by: