There are some great products available that allow banks to offer a variety of services on-line, however it might still involve a manual process at some point. Here are some ideas surrounding security and regulatory requirements when conducting a wire through an on-line channel:
- Ensure your institution has strong CIP procedures, especially if you are opening accounts on-line. Make sure you are comfortable with the identity of the customer before conducting wires.
- Make sure the initial on-line sign-in process is strong and will not allow generic passwords (e.g. customers name)
- Make sure all wires are filtered through OFAC software
- Have some type of account monitoring tool in place to help identify suspicious activity (e.g. unusually large dollar amounts, high risk locations, frequency of wires)
- Contact the customer or require a signed form for all wires over a certain dollar level (e.g. $25,000)
- Send a confirmation letter to the customer’s address after each wire transaction
First published on BankersOnline.com 1/17/05