Comments on: Consolidation in banking industry possible because of regulations http://kosu.org/2012/11/115993/ The State's Public Radio Mon, 13 May 2013 04:05:53 +0000 hourly 1 http://wordpress.org/?v=3.4.1 By: Matthew http://kosu.org/2012/11/115993/comment-page-1/#comment-123047 Matthew Fri, 16 Nov 2012 18:42:28 +0000 http://kosu.org/?p=115993#comment-123047 As an organization that provides due diligence to banks, and as a client of a small local bank here in CA we do not believe that one size fits all is in anyway appropriate. We see many breaches of KYC where corporations are fronted by one individual but truly owned by another, often undesirable, individual coming through from our clients. In one recent case we identified transactions in excess of $70,000,000 being wired in from Europe to accounts held by more than 8 major banks in Florida and to accounts beneficially held by one foreign national but it took three years for suspicion to be raised. Our local bank, in a city of under 10,000 know every person that walks through their doors and does not have these problems. A change in routine is very rapidly seen and questioned. As an organization that provides due diligence to banks, and as a client of a small local bank here in CA we do not believe that one size fits all is in anyway appropriate.

We see many breaches of KYC where corporations are fronted by one individual but truly owned by another, often undesirable, individual coming through from our clients. In one recent case we identified transactions in excess of $70,000,000 being wired in from Europe to accounts held by more than 8 major banks in Florida and to accounts beneficially held by one foreign national but it took three years for suspicion to be raised.

Our local bank, in a city of under 10,000 know every person that walks through their doors and does not have these problems. A change in routine is very rapidly seen and questioned.

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