Compliance Professional Resources    David DeMartino    212.257.6500 ext.1    ddemartino@compliancepros.net
April 2010
	This issue's articles:
	IAT, OFAC and AML: Where the Paths Cross Everything is Negotiable What You Need to Know About Reg GG
	IAT, OFAC and AML: Where the Paths Cross
	by David DeMartino, Managing Partner Compliance Professional Resources, LLC By now everyone knows that there is a tremendous amount of focus on filtering the party information as associated with IAT (international ACH transactions). Some questions that should be clarified are: What are IAT's? ACH payments that are processed through the U.S. ACH system from outside the territorial jurisdiction of the U.S. What are my OFAC obligations? All IAT's must be OFAC filtered, critical information specific to originator and receiver should now be included and therefore be OFAC checked. What should I do to be in compliance with OFAC filtering on IAT's? Develop and implement IAT OFAC procedures. Review agreements with Corporate originators to ensure they are IAT compliant. Train your staff. Test your OFAC technology as it relates to IAT screening.		What about IAT'S as they relate to BSA monitoring? Yes, you should incorporate IAT monitoring as part of your AML monitoring program. Use IAT volume amount as part of your customer risk rating. Monitor IAT transactions. Use key rules applied to IAT's. High risk country Large amount transactions Same originator and beneficiary Repetitive transactions Velocity rules Multiple originators to single beneficiary These are some basic steps that should be followed; the best way to determine your risk is to perform an OFAC vulnerability assessment. This will certainly enable you to determine if you have inherent risk in your OFAC process for both IAT's and all other risky transactions.
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	Everything is Negotiable
	by Len Adams, CPC Managing Partner, Compliance Professional Resources, LLC CEO, Adams Consulting Group, LLC Managing Partner, The ARD Group Negotiation is defined as the use of information and power to affect behavior. Whether we realize it or not, we negotiate something every day of our lives. Whether it be what time our children go to bed or the final price of the car you want, a negotiation takes place. This is especially true when it comes to the job search process. There are several items to be cognizant of when it comes to negotiating, whether it be for a job or in our everyday lives. Who, What, When, Where, Why Yes, it is true that these are the same questions utilized by reporters when writing a story. However, these same questions must be examined when negotiating. Who am I negotiating with? Does the person I am negotiating with have the power or authority to make the final decision regarding the issues I am confronting? All too often, particularly in a job search, the candidate spends far too much time negotiating points with someone who either may not be the decision maker, or may not be able to influence the decision maker. What am I negotiating? Are the issues I am raising important enough to discuss? Are they really deal breakers? All too often, a deal may fall apart over an issue that, when examined, is really not that important to either side. When do I negotiate? Again, one of the most common mistakes candidates make is beginning a negotiation far too early in the process. Most candidates mistakenly believe that the first interview is the time to begin negotiating. Nothing could be further from the truth. The first interview, and in most cases, the second interview, are times to sell oneself. The objective of these meetings is pure and simple: to learn as much about the position and company as possible, and to get the employer interested in you. Once sufficient interest is established, then and only then, should the negotiation process begin. Why? Is the issue important enough to negotiate?		Negotiable Issues Contrary to popular belief, most items are negotiable when it comes to a job offer. However, some are more negotiable than others. This is the variable that a skilled negotiator can determine. There are many factors to consider. One of the most important is to realize what type of job market one is negotiating in. If it is a candidate-driven market, or, if the candidate has skills that are in demand, than many other negotiable items increase. If the reverse is true, the pendulum swings back towards the employer. Some of the more common negotiable items are: Salary, Title, Benefits, Hours, Perks, Review Period, Bonus, Sign on Bonus, Location Each of these items carries with it nuances as to how negotiable they are. It is important to remember to ask oneself the questions, "How important is this to me? Is it a deal breaker? What degree do I want to negotiate this to?" For instance, salary may be a primary motivation factor in your acceptance or decline of an offer. It is important to look at the full picture—does the position carry other benefits with it that may outweigh the salary differential you are experiencing? In many cases, the salary differential is merely an arbitrary number that either side has focused on. Consider negotiating a review period sooner than the normal one. Many employers will view this as an indication of your willingness to demonstrate your ability and be rewarded accordingly. I have a saying that I have used for years in my business: If money is the only issue standing in the way of an offer being accepted by either side, then the issue is not the money...there is something else that has not been communicated by one or both sides. The skilled negotiator needs to find out what that issue is.
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	What You Need to Know about Reg GG
	by Bill Schlameuss, Compliance Consultant Introduction In June 2006 the US Congress enacted and the President signed into law the Unlawful Internet Gambling Enforcement Act (UIGEA). A mere two and one-half years later, the Federal Financial Regulators issued the Final Rule, Regulation GG, effective in 60 days (January 19, 2009) with compliance mandatory by December 1, 2009. Three major gambling associations petitioned the regulators on the basis of a too-short implementation horizon for their members, and the regulators postponed the mandatory compliance date to June 1, 2010. US Branches and Agencies of Foreign Banks must comply by the June 2010 deadline.          The Basics The thrust of compliance with the UIGEA takes aim at gambling establishments that operate through Internet sites; it regulates businesses, not gamblers. The Act forbids such establishments from taking/making bets/wagers with persons for whom such bets and wagers would be illegal based on gambling laws among federal, state and tribal jurisdictions. Gambling companies must know from whom and from where they accept the wagers and that the particular wager is legal in that jurisdiction. One of the means the regulators chose to enforce the law was to require financial institutions to conduct due diligence proper to the "control" of gambling concerns. This results in financial institutions having to perform due diligence on commercial accounts to determine if the commercial account may be used for gambling. The regulators placed no additional monitoring burden on banks beyond that which they have previously prescribed as best practice AML monitoring.		The DOs and DON'Ts DOs: Each financial institution must establish and adhere to policies and procedures that (1) delineate due diligence steps that it will use to determine if a commercial account will be used for internet gambling, (2) provide a notice to existing and future commercial customers that they may not use their accounts for illegal gambling purposes, (3) define the steps for handling commercial accounts that are legal gambling concerns to protect from illegal activity, and (4) what to do if an account is accepting illegal transactions. Banks that choose to maintain accounts for gambling concerns must take steps to ensure that nothing illegal passes through the account. So, the bank must obtain a copy of the concern's license to conduct internet gambling, require that the customer notify the bank immediately of any changes in the customer's status, and have the customer provide 3rd party certification that the customer's systems have controls to ensure transactions will remain within lawful limits, including age and geography factors. DON'Ts (really, "don't have to's"): No financial institution must open or not open an account for a gambling concern; the bank must decide if such accounts fit into its target market. No financial institution must monitor transactions to determine if the funds movements involve restricted (illegal) transactions. Conclusion For most branches of foreign banks, the result of Reg GG has more of a "form over substance" implication. One should not, however, underestimate the importance of meeting the obligations of the Reg. Failure to establish the required due diligence procedures, customer notices, etc. could lead to exceptions in the following safety and soundness examination, unnecessary and completely avoidable exceptions. If you have concerns, please contact us for assistance in the implementation of the latest, but certainly not last, Reg.
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	About CPR
	CPR is a unique regulatory compliance services firm. A unique blend of compliance recruiting services (executive, permanent, and temporary), and compliance consulting services. Add in managing partners that have essentially pioneered the industry, this makes CPR clearly a leader in the Regulatory Compliance service space. Our commitment to excellence in all phases of our business is unparalleled. As it relates to recruiting, we will provide you with the best, most skilled candidates, we work tirelessly to get the right person, after we completely understand your needs. Our Compliance consultant services are surgically focused on getting the job done as expeditiously as possible, and without crippling your budget. We only provide seasoned and experienced consultants, always with the correct skill sets. Our goal is to get it right the first time.
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