Spring 2012
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| Suspicious activity: Are you seeing the big picture? | |
 | Monitoring customer transactions for suspicious activity is a key component of a financial institution’s Bank Secrecy Act / Anti-Money Laundering (BSA/AML) program. Unfortunately, many banks make the mistake of focusing their efforts on deposit accounts and paying less attention to other products and services, particularly lending. This article shows how, after conducting a risk assessment, a bank can design a BSA/AML compliance program that fits its risk profile, and then implement risk-based due diligence procedures to minimize lending-related BSA/AML risks. A sidebar lists several borrower red flags that may raise bank suspicions. Read More |
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| Understand the tax implications of bank mergers | |
 | Institutions contemplating a merger need to consider a variety of tax issues. Two key issues today are: the dividend vs. capital gain treatment of cash payments in a tax-free merger, and the preservation of deferred tax assets. It’s also important to conduct thorough due diligence to uncover any tax liabilities that might be inherited from the target bank. This article takes a look at each of these matters. Read More |
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| Sorting through restatements — Sometimes financial restatements simply correct mistakes | |
 | Mistakes on borrowers’ financial statements, requiring financial restatement, can happen. But financial restatements can also be a red flag for fraud or misrepresentation. It’s a challenge for any lender to determine which is which. This article uses a hypothetical situation describing a company that innocently made mistakes, resulting in a costly restatement before it was able to successfully complete a public offering. The article also describes some of the leading causes of financial restatements. Read More |
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| BANK Wire | |
 | This issue’s “BANK Wire” discusses recent foreclosure guidance offered by the Office of the Comptroller of the Currency; the FDIC’s increased scrutiny of bank insurance policies; FAQs on interest rate risk management that have been jointly adopted by the various federal banking agencies; and the Consumer Financial Protection Bureau’s prototype monthly mortgage statement that is being offered for comments. Read More |
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This publication is distributed with the understanding that the author, publisher and distributor are not rendering legal, accounting or other professional advice or opinions on specific facts or matters, and accordingly assume no liability whatsoever in connection with its use. ©2012 • CBAsp12 | |