Owlin’s Post

US banking regulators have recently issued guidelines for community banks regarding third-party contracting of critical activities. The guidelines are focused on helping banks manage the associated risks. If you're a community bank, it's important to stay informed and up-to-date on these guidelines to ensure the safety and security of your institution. #USBankingRegulations #CommunityBanks #ThirdPartyContracting #RiskManagement

Federal bank regulatory agencies on Friday released a guide to support community banks in managing risks presented by third-party relationships. One the one hand, regulatory agencies have been heavy-handed with enforcement actions against banking-as-a-service partner banks. On the other hand, the guide seems to strike a more supportive tone, stating, "Community banks engage with third parties to compete in and respond to an evolving financial services landscape. Third-party relationships can offer community banks access to new technologies, risk-management tools, human capital, delivery channels, products, services, and markets." Is the guide an acknowledgement that bank-fintech partnerships are here to stay or is it a warning that banks need to better manage third party risk? Seems to me to be a little bit of both.

The OCC, FDIC, and Federal Reserve Board have released a guide to support community banks in managing risks presented by third-party relationships. This guide will be an invaluable resource for community banks as they navigate the potential risks of these relationships. Check out the link below to learn more about this important resource. https://lnkd.in/eDuZk9nv

🚨RBI's mandate on integrating Early Warning Systems (EWS) is not just compliance—it's a strategic advantage for financial institutions. 🚨 Pirimid Fintech's Services: Ahead of the curve, fully customizable. Ready to comply and excel? Our EWS isn't just a mandate-filler—it's your competitive edge. Let's upgrade your risk management. Contact us now: https://lnkd.in/dNMZz2ix #EWS #RBIMandate #RBI #Pirimidtech #FinancialInstitutions #EarlyWarningSystems #FinancialInclusions #BankingRegulations #HousingFinance #NBFC #Banks #EWSIndicators

Community banks routinely rely on third parties for a range of products, services, and other activities. Third parties can provide banks with access to new technologies and products; however, they may introduce new risks or increase existing risks to a bank. The guide is a resource for community banks to consider in managing the risks associated with third-party relationships. The guide also addresses potential risk considerations, information resources, and examples for managing a bank’s third-party relationships. It covers the following: • Risk Management: Discusses risk considerations • Third-Party Relationship Life Cycle: Explains the five stages of the life cycle • Governance: Provides considerations for a bank’s governance over third-party relationships • Appendix: Provides references to additional resources and guidance https://bit.ly/3LkkFMm #riskmanagement #thirdpartyrisk #federalreserve #communitybanks

With RBI mandating EWS integration, financial institutions must act swiftly. Our robust EWS solutions at Pirimid Fintech ensure seamless compliance and enhanced risk management. Reach out to us to learn how we can help!

🌟 Excited to reshare a valuable resource from the Office of the Comptroller of the Currency (OCC)! 🌟 A GREAT resource with even GREATER insights from the Office of the Comptroller of the Currency, Federal Reserve System, and Federal Deposit Insurance Corporation (FDIC) to help #CommunityBanks better manage third-party relationships throughout the #RiskManagement life cycle. Key highlights: ✅ Identify, assess, monitor, and control risks associated with third-party relationships. ✅Ensure compliance with laws & regulations. ✅Safeguard operational soundness. Check it out! 👇🏿👇🏿👇🏿 And feel free to share this valuable guide with your network! 😊👍 #Fintech #BaaS #BankingasaService #BankingInnovation #Future #Innovation

Community banks routinely rely on third parties for a range of products, services, and other activities. Third parties can provide banks with access to new technologies and products; however, they may introduce new risks or increase existing risks to a bank. This guide is a resource for community banks to consider in managing the risks associated with third-party relationships. The guide also addresses potential risk considerations, information resources, and examples for managing a bank’s third-party relationships. It covers the following: ▶️ Risk Management: Discusses risk considerations ▶️ Third-Party Relationship Life Cycle: Explains the five stages of the life cycle ▶️ Governance: Provides considerations for a bank’s governance over third-party relationships ▶️ Appendix: Provides references to additional resources and guidance Read the full article here: https://bit.ly/3WfYhdh #FederalReserve #RiskManagement #ThirdPartyRisk #CommunityBanks

The OCC, FDIC, and Federal Reserve have recently highlighted the critical risks associated with third-party deposit arrangements, especially involving fintech partnerships. With innovation comes the necessity for robust risk management practices. Here’s what you need to know: Key Insights: - Potential Risks: The agencies identified concerns around safety, soundness, compliance, and consumer protection. - Effective Practices: Emphasized the need for comprehensive due diligence, continuous monitoring, and clear contractual agreements. - Regulatory Focus: The agencies are seeking additional information on the nature and implications of bank-fintech arrangements and effective risk management strategies. How RADD LLC Can Help: With extensive experience in managing third-party deposit arrangements and fintech partnerships, RADD LLC provides solutions to mitigate risks and ensure compliance. Let's ensure your bank’s partnerships are safe, compliant, and beneficial. Partner with RADD LLC to navigate the complexities of third-party risk management effectively. Book your free strategy call now: https://lnkd.in/gthnrri #RADDLLC #ThirdPartyRiskManagement #BankFintechPartnerships #BankCompliance #RiskManagement #FinancialServices

On 26th March 2024, the Wolfsberg Group, an assembly of leading global banks, issued Principles for Auditing a Financial Crime Risk Management (FCRM) for Effectiveness.   💎 The document emphasizes the crucial role of Internal Audit (IA) in assessing the FCRM programme’s effectiveness leveraging the 3 Factors published by the Group in 2019: regulatory compliance, risk-based set of controls, and provision of highly useful information.   📐 Financial Institutions (FIs) must comprehend their inherent financial crime risk, regulatory expectations, and their risk appetite. This knowledge, alongside enough expertise, helps build an effective, risk-based FCRM programme and design risk-based controls. FIs should also have a sufficiently governed process to adjust this control set over time, considering financial crime risk, evolving strategies, laws, regulations, and threats.   📊 FIs should establish quantitative and/or qualitative indicators relating to the sharing of highly useful information, developing indicators that can be applied systematically across their information-sharing and reporting activities in support of law enforcement actions. Such indicators must pivot on quality and usefulness of the information rather than its mere existence or purely technical compliance.   For more information ⬇ Resources - Wolfsberg Group (wolfsberg-group.org)