AML scrutiny weighs on oversight of foreign accounts (Financial Advisor IQ)

US wirehouses and wealth management units are devoting greater resources to monitor their foreign accounts. Necessitated by enhanced compliance risks and AML obligations, some firms are grappling with regulatory fines as they attempt to address compliance shortcomings and lapses through investments in technology. Despite these efforts, it may not be the correct mix of resources, with more spent on technology than people, comments Amy Lynch, FrontLine’s Founder and President. Ms. Lynch explains that appropriate due diligence processes to review foreign accounts work best with a two-tiered system that utilizes both technology to surface potential problems and humans to investigate the issues. She adds that gaps in data can lead to mistakes when firms acquire another entity and bring on a batch of accounts, which is one of several concerns that have some firms reevaluating their services for foreign accounts. See Financial Advisor IQ, “Wirehouses Weigh Pitfalls of Overseas Wealth Biz amid Regulatory Scrutiny“