Recently, we wrote about rumors swirling of regulatory crackdowns on bank-fintech partnerships and how to stay ahead of regulatory scrutiny. Those rumors have now become concrete.
Blue Ridge Bank, a US partner bank, disclosed an agreement with the US Office of the Comptroller of the Currency (OCC) limiting its ability to onboard new fintech partners while it bolsters its oversight of third-party fintech relationships and improves its BSA/AML risk management.
The OCC agreement is a helpful blueprint for compliance leaders to understand regulatory expectations of bank-fintech partnerships.
Bottom-line, it’s clearer than ever that partner banks must comprehensively assess, monitor, and manage risks from their fintech partners. Weak oversight of even one fintech partner means exposure to significant financial crime and regulatory risk.
The key risk management components that partner banks should have in place are:
Many partner banks rely heavily on the third-party fintech line of business. Falling short of these regulatory expectations poses massive business risk.
Potential consequences include:
Cable is the only automated BSA/AML assurance platform enabling partner banks to have complete oversight of ALL of their fintech partners, and 100% of their customers, in real time. We’ve also built a dynamic risk assessment tool enabling partner banks to easily assess and manage risks arising from each of their fintech partners.
If you want to avoid these kinds of actions and stay on top of regulatory expectations, we’ve built the tools you need.
Get in touch with us here if you want to understand how Cable can help you.
Some further practical steps that compliance leaders can take today include:
We can’t wait to help more partner banks successfully manage their growing BSA/AML compliance burdens. Reach out today to find out how Cable works.