CLASS #11 QUESTIONS SECURITY AND COMPLIANCE

CLASS #11 QUESTIONS SECURITY AND COMPLIANCE - 6. Banks are...

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SECURITY AND COMPLIANCE QUESTIONS 1. Explain the connection between employee fraud and theft and the private banking  client need for confidentiality. 2. What are the reasons for the diminishing value of confidentiality in private  banking? 3. Private banking units are sometimes referred as “a bank within a bank”. Explain. 4. What are the potential risks involved in private banking activities? 5. Detail some of the policies required by the Federal Reserve Bank to manage  private banking risks.
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Unformatted text preview: 6. Banks are required to apply the Know your Costumer (KYC) policy in their private banking operations. What are some of the major features of this policy? 7. When lending to private banking clients, why is so important to verify that the collateral is from legitimate sources? 8. How can banks supplement basic account information under the Due Diligence process? 9. What is the purpose of a PIC? 10. Describe compliance functions....
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This note was uploaded on 03/05/2011 for the course FIN 4663 taught by Professor Martinez during the Fall '10 term at FIU.

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