Let me take this opportunity to emphasize a few of these areas for sharper focus by the ACBs in view of their importance- both from a bank-specific as well as from a systemic viewpoint. (a) KYC/AML: The violations relating to KYC/AML compliance probably constitute a significant share of the regulatory penalties levied on banks in recent times.
The host country regulators have been particularly harsh on overseas banks. In December 2012 alone, two London-based banks, HSBC Group and Standard Chartered Bank, agreed to pay financial penalties for violations of U.S. laws related to anti-money-laundering practices and suspicious activity reporting in excess of $ bn.