March 1, 2024

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March 1, 2024

AI Compliance and Regulation: What Financial Institutions Need to Know

While generative AI (GenAI) stands poised to improve everything from risk management to profit margins, the banking world has been understandably hesitant to adopt the technology in light of ongoing regulatory changes.

Financial institutions can benefit from incremental AI implementation especially when it comes to upgrading the customer experience through solutions including ChatGPT-like offerings. Read this article to better understand AI compliance and the regulatory landscape of today.

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Features

Déjà vu in state capitals

Legislation on ESG, artificial intelligence and interchange fees are once again on the table during the 2024 legislative sessions.

We don’t know what we don’t know — but now is the time to ask.

First- and second-line risk: A common language

First-line risk knows the business, while second-line risk knows the broader organization. When brought together, both perspectives paint a compelling view of the true nature of risk across the company.

One question facing bank employees who work in compliance is how they can file a whistleblower report without violating existing prohibitions on disclosing suspicious activity report information.

Ncontracts, launched an online training program “Nstitute Certified Vendor Management Professional (NCVMP)" certification based on the new interagency guidance on 3rd party risk management. Nstitute is a self-paced, training program that covers essential areas of third-party risk management to empower vendor managers and professionals tasked with overseeing third-party vendors, consultants, fintechs, and others. Ncontracts is currently offering an exclusive 30% discount.

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Fed’s Barr outlines supervisory expectations for counterparty credit risk

The Federal Reserve plans to continue its supervisory focus on fundamental risk management related to counterparty credit risk, and it will conduct an analysis of how the largest banks cope with the default of their largest hedge fund counterparties, Fed Vice Chairman for Supervision Michael Barr said.

Federal Reserve Governor Michelle Bowman said that she remained concerned about the data underpinning the Fed’s proposal to further lower the debit card interchange fee cap under Regulation II.

ABA recommended that banking agencies make several changes to their proposed revisions of the Federal Financial Institutions Examination Council reports — including the Call Report — such as pushing back the effective date of the revisions.

CFPB planning new rules for data brokers later this year

CFPB Director Rohit Chopra said the bureau will propose new rules later this year to limit certain activities of data brokers.

BAFT — ABA’s global transaction banking subsidiary — and the business-to-business financial technology firm Trade Finance Global announced a jointly produced guide on Letters of Credit.

ABA and six associations urged the Federal Communications Commission to take additional action to combat text messages sent by bad actors that impersonate banks and other legitimate companies.

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Training

March 6
Webinar: Scams Against Americans

March 11 - June 28
Facilitated Training: General Accounting

March 18 - 22
School: Compliance School – Foundational
Emory Conference Center, Atlanta, GA

March 18 - 21
School: Compliance School – Intermediate
Emory Conference Center, Atlanta, GA

March 28
Webinar: Deposits: Strategies to Manage Liquidity and Funding Costs

April 8 - May 31
Facilitated Training: Managing Interest Rate Risk

April 16
Webinar: Building & Restoring Trust Through Community Conversations

April 17
Webinar: 2024 Regulatory Updates and Compliance Challenges – Part 2

May 6 - August 23
Facilitated Training: Analyzing Financial Statements