Ross Marrazzo is Managing Partner of Treliant. He is also responsible for the firm’s Global Financial Crimes Compliance service area. Ross has over 35 years of domestic and international experience in the design, oversight, and assessment of corporate and regulatory compliance, Anti-Money Laundering/Bank Secrecy Act, Economic Sanctions/Office of Foreign Assets…
- Source: federalreserve.gov
Treliant commends the Board on its hard work on ensuring the U.S. financial system operates in a safe and sound manner, and in understanding the needs and challenges of its regulated financial institutions. Treliant’s deep global subject matter expertise in designing, implementing and assessing programs to comply with regulatory requirements can help institutions design sustainable programs and processes, and remediate control issues to stay outside metrics like those issued by the Board.
The recently issued U.S. Board of Governors Federal Reserve System Supervision and Regulation Report dated November 2019 provided some good and bad news. The good news is the report stated:
- “U.S. banking organizations remain strong as they continue to maintain strong capital and liquidity levels”;
- “Overall, U.S. banking organizations are better prepared now than before the last financial crisis to weather any potential downturn in the economic cycle”;
- The largest, most systemically important banking organizations are subject to the most stringent regulation and supervision”; and
- “The Board continues to promote the principles of efficiency, transparency, and simplicity in its approach to supervising and regulating institutions”.
The bad news is that the report stated that “weaknesses persist, particularly in governance and controls” and further stated “of the supervisory findings still outstanding, over 60 percent relate to this category of issues, including weaknesses in firms’ BSA/AML programs, internal audit functions, IT risk management (including cybersecurity), and model risk management”.