Compliance is a word that all companies, especially financial firms, need to know but is one that is not always enduring to boards and senior management. After assigning compliance officers the task of designing the compliance program, many executives lose interest and move on to more compelling concerns. But considering the potentially devastating risks to reputation and profitability of non-compliance, an effective compliance program requires continuous engagement, support and investment.
Counter Terrorist Financing
Financial institutions spearhead a variety of activities, from approving college loans to setting up retirement funds, but they also play an important role in bringing terrorists to justice. By partnering with law enforcement, FIs are able to complete the puzzle by exchanging information on terrorism-financing-related transactions. These public/private partnerships are countering terrorist activities effectively, especially in the UK and the US, and creating CTF models for other countries to follow.
Many bank managers are grateful that they do not live and work in war-torn countries; but guess what, hardline terrorists are bringing the battle close to home. Within the current world climate, banks, small and large, have a responsibility to participate in the war against domestic terrorism by implementing vigorous anti-money-laundering/counter-terrorist-financing programs.