We have our own data processing department and currently do not allow those dp employees to also process monthly statements. This job function is currently being done by different departments throughout the bank. (i.e. loan processors and tellers) Our EVP has decided that this job function should go back to the data processing staff. I feel there is a conflict of interest in that this staff is not only responsible for the check clearing process but also the statement processing function. Does anyone know of any regulation that would agree with this thought process?

I'm not sure what risk you have identified to feel there is a conflict of interest???

Using that reasoning, wouldn't the teller, who handles the customer transactions, have a conflict too?