How do BSA/AML & Reg E Relate to Financial Institutions Using Social Media?
Recently I read an article that suggested BSA/AML and Reg E were compliance concerns to be aware of when using social media at a financial institution. This surprised me because in all my observations of financial institutions using social media, I hadn’t seen anything that would seem to relate to these regulations.
Upon further investigation, it appears that these concerns are actually looking at services such as CPNI’s P2P solution PATsend™ and others that allow financial institution customers to send money from their account to another person’s account via a social media channel or other channels such as mobile phones and email. While not widely adopted yet, these types of payments would obviously need to be incorporated into the financial institution’s normal BSA/AML monitoring processes to determine activity risk levels.
Reg E becomes relevant when the financial institution is directly involved in these service offerings. In these instances, the institution must take care of the Reg E disclosures required for all payments made electronically.
Free Webinar: Social Media ABCs from Reg B to Reg Z – July 27, 2010 1pm – 2pm EDT
Failing to figure out the regulatory issues is what’s holding over 75% of banks and credit unions back from using social media. With concerns ranging from Regs B – Z to reputational risk, it’s only a matter of time before financial regulators turn their focus to addressing social media. The time to prepare is now! – This webinar will discuss the proper steps to ensure sound social media compliance. Hear directly from bank and credit union executives as they share lessons learned during their own institution’s social media implementation. Learn more and Register for this Webinar today!
Free Banking Policies: Social Media, Internet Acceptable Use
Continuity Control has a dozens of free banking policies and checklists available to our members. Of particular interest to readers of this blog post might be several internet acceptable use policies that cover social media as well as a policy specific to social media. Control’s Community provides a collaborative forum for banks, credit unions and industry vendors to work together cooperatively to tackle the complexities of compliance.
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