Description

The importance of the core elements of managing payments related risk (e.g., risk assessment, policies and procedures, due diligence, real time controls, and oversight) is magnified in payment processor relationships. The latest Third-Party Relationship Guidance that was published in June 2023 provided financial institutions with expectations of safe and sound business practices when establishing third-party relationships. Managing these risks can be challenging if the financial institution isn’t completely informed about the third-party relationships or if there is an absence of controls that enable the financial institution to react fast enough to identify errors before they create consequences or to detect and prevent fraud. Attendees will hear the postmortem details of some recent cases that involved third-party processors (in both check collection and ACH processing) and the “unknowns” that led to significant financial and reputational losses for banks that could have prevented the damage if they had done a better job of identifying and managing the risks arising from the “unknowns.” The cases fall into two categories: “Oops, we are a billion over the limit” and “Beware the d/b/a’s.”

Speakers: Dick Fraher, Founder & Principal at Payment Innovation & Regulation LLC and Terri Sands, Managing Director, Payments, Compliance and Financial Crimes

Topics include:

• June 2023 Regulatory Guidance on Third-Party Relationships
• Lessons learned from Third-Party Relationships
• Best business practices for establishing and maintaining Third-Party Relationships

• Payments Professionals (May submit AAP/AAPR Continuing Education Credits)
• Deposit Operations/Electronic Banking
• Client Facing Teams
• Treasury Sales and Operations
• BSA and Fraud
• Compliance Officers
• Internal Audit
• Information Security/Technology
• Senior Management/Executive Management

Topics include:

• Risk Management
• Fraud
• Payments