U.S. patent application number 13/020709 was filed with the patent office on 2011-06-02 for correspondent bank registry.
Invention is credited to David Lawrence, Carl Young.
Application Number | 20110131125 13/020709 |
Document ID | / |
Family ID | 43617377 |
Filed Date | 2011-06-02 |
United States Patent
Application |
20110131125 |
Kind Code |
A1 |
Lawrence; David ; et
al. |
June 2, 2011 |
Correspondent Bank Registry
Abstract
Methods and systems are provided for facilitating the transfer
of information relating to risk management, such as, for example
information directed towards compliance with the USA PATRIOT Act
and certification of a foreign correspondent bank. Generally, the a
foreign bank or other entity can provide a risk management
clearinghouse with information relating to compliance with
government requirements, or other information, and allow the risk
management clearinghouse to convey to information in whole or in
part to interested parties. Centralized distribution of
certification related information can facilitate consistent and
accurate compliance with government related requirements.
Inventors: |
Lawrence; David; (New York,
NY) ; Young; Carl; (San Francisco, CA) |
Family ID: |
43617377 |
Appl. No.: |
13/020709 |
Filed: |
February 3, 2011 |
Related U.S. Patent Documents
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Application
Number |
Filing Date |
Patent Number |
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10278380 |
Oct 23, 2002 |
7899722 |
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13020709 |
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10074584 |
Feb 12, 2002 |
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10278380 |
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10021124 |
Oct 30, 2001 |
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10074584 |
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09812627 |
Mar 20, 2001 |
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10021124 |
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Current U.S.
Class: |
705/35 |
Current CPC
Class: |
G06Q 40/10 20130101;
G06Q 40/08 20130101; G06Q 40/025 20130101; G06Q 40/04 20130101;
G06F 21/577 20130101; G06Q 40/00 20130101; G06Q 40/06 20130101;
G06Q 40/02 20130101 |
Class at
Publication: |
705/35 |
International
Class: |
G06Q 40/00 20060101
G06Q040/00 |
Claims
1. A method for managing risk associated with a correspondent
account, the method comprising: receiving risk management
certification information from a foreign bank; storing the
information in a computer server; receiving a request for
particular certification information; and transmitting the
particular certification information.
2. The method of claim 1 additionally comprising the step of
receiving a request to register certification information.
3. The method of claim 1 additionally comprising the step of
transmitting certification registration materials.
4. The method of claim 1 additionally comprising the steps of
receiving a request for guidance relating to providing
certification and responding to the request.
5. The method of claim 1 additionally comprising the step of
docketing information relating to the certification information
received.
6. The method of claim 1 additionally comprising the step of
ascertaining the completeness of the certification information
received.
7. The method of claim 1 additionally comprising the step of
notifying appropriate of administrative obligations.
8. The method of claim 1 additionally comprising the steps of
receiving updated information relating to the certification and
transmitting the updated information to appropriate parties.
9. The method of claim 1 additionally comprising the step of
requesting authorization to convey certification information.
10. The method of claim 1 additionally comprising the step of
archiving actions taken relating to certification.
11. A method for managing risk associated with a correspondent
account, the method comprising: receiving information descriptive
of a risk management certification from an entity, wherein the
information received comprises a designated network address of a
resource storing a risk management certification described by the
information; receiving a request for information relating to the
entity described by the risk management certification; and
conveying the designated network address of the network resource
storing the risk management certification responsive to the request
for information.
12. The method of claim 11 additionally comprising the step of
receiving authorization from the entity to convey the designated
network address.
13. The method of claim 11 additionally comprising the steps of:
receiving a notice of an updated risk management certification and
a designated network address of a network resource containing the
updated risk management certification; and transmitting the notice
of an updated risk management certification and a designated
network address of a network resource containing the updated risk
management certification to one or more recipients.
14. The method of claim 11 additionally comprising the step of
transmitting a notification comprising a renewal date.
15. A computerized system for managing risk associated with a
correspondent account, the system comprising: a computer server
accessible with a system access device via a communications
network; and executable software stored on the server and
executable on demand, the software operative with the server to
cause the server to: receive risk management certification
information from a foreign bank; store the information in a
computer server; receive a request for particular certification
information; and transmit the particular certification
information.
16. The computerized system of claim 15 wherein the server
comprises a proprietary risk management server.
17. Computer executable program code residing on a
computer-readable medium, the program code comprising instructions
for causing the computer to: receive risk management certification
information from a foreign bank; store the information in a
computer server; receive a request for particular certification
information; and transmit the particular certification
information.
18. A computer data signal embodied in a digital data stream
comprising data relating to a correspondent account, wherein the
computer data signal is generated by a method comprising the steps
of: receiving risk management certification information from a
foreign bank; storing the information in a computer server;
receiving a request for particular certification information; and
transmitting the particular certification information.
19. A method of interacting with a network access device so as to
manage risk relating to a correspondent account, the method
comprising the steps of: initiating interaction with a risk
management server via a communications network; requesting a risk
management certification for a particular foreign bank; and
receiving a copy of a risk management certification.
20. The method of claim 19 additionally comprising the step of
receiving an update to the risk management certification.
21. The method of claim 19 wherein the risk management
certification comprises information asserting compliance with the
USA PATRIOT Act.
Description
CROSS REFERENCE TO RELATED APPLICATIONS
[0001] This application claims priority to U.S. Ser. No. 60/390,937
filed Jun. 24, 2002 and entitled "Correspondent Bank Registry".
This application is a continuation-in-part of a prior application
entitled "Risk Management Clearinghouse" filed Apr. 4, 2002 and
bearing the Ser. No. 10/074,583, as well as being a
continuation-in-part of a prior application entitled "Risk
Management Clearinghouse" filed Oct. 30, 2001, and bearing the Ser.
No. 10/021,124, which is also a continuation-in-part of a prior
application entitled "Automated Global Risk Management" filed Mar.
20, 2001; and bearing the Ser. No. 09/812,627, all of which are
relied upon and incorporated by reference.
BACKGROUND
[0002] This invention relates generally to a method and system for
facilitating the identification, investigation, assessment and
management of legal, regulatory, financial and reputational risks
("Risks"). In particular, the present invention relates to a
computerized system and method for banks and non-bank financial
institution to comply with "know your customer" requirements
associated with a correspondent bank.
[0003] As money-laundering and related concerns have become
increasingly important public policy concerns, regulators have
attempted to address these issues by imposing increasing formal and
informal obligations upon financial institutions. Government
regulations authorize a broad regime of record-keeping and
regulatory reporting obligations on covered financial institutions
as a tool for the federal government to use to fight drug
trafficking, money laundering, and other crimes. The regulations
may require financial institutions to file currency and monetary
instrument reports and to maintain certain records for possible use
in tax, criminal and regulatory proceedings. Such a body of
regulation is designed chiefly to assist law enforcement
authorities in detecting when criminals arc using banks and other
financial institution as an intermediary for, or to hide the
transfer of funds derived from criminal activity.
[0004] Amongst other obligations, sections 313 and 319(b) of the
Uniting and Strengthening America by Providing Appropriate Tools
Required to Intercept and Obstruct Terrorism (USA PATRIOT) Act of
2001 prohibit certain financial institutions from providing
correspondent accounts to a foreign Shell Bank and requires
financial institutions to take reasonable steps to ensure that a
correspondent account provided to a foreign bank is not being used
to indirectly provide banking services to foreign Shell Banks. In
addition, section 319(b) of the USA PATRIOT Act adds a new
subsection (k) to 31 U.S.C. 5318 which requires certain financial
institutions that provide correspondent accounts to a foreign bank
to maintain records of the foreign bank's owners and agent in the
United States designated to accept service of legal process.
[0005] The USA PATRIOT Act, provides that a covered financial
institution shall not establish, maintain, administer, or manage a
correspondent account in the United States for, or on behalf of, a
foreign bank that does not have a physical presence in any country
(Shell Bank). In addition, the USA PATRIOT Act requires a covered
financial institution to take reasonable steps to ensure that any
correspondent account established, maintained, administered, or
managed by the covered financial institution in the United States
for a foreign bank is not being used by that foreign bank to
indirectly provide banking services to a foreign Shell Bank that is
not a regulated affiliate. Current regulations can require that a
certification be established and maintained on a two year
cycle.
[0006] Bank and non-bank financial institutions, including: an
investment bank; a merchant bank; a securities firm, any insured
bank (as defined in section 3(h) of the Federal Deposit Insurance
Act (12 U.S.C. 1813(h)); a commercial bank or trust company; a
private banker; a credit union; a thrill institution; broker
dealers securities and commodities trading firms; asset management
companies, hedge funds, mutual funds, credit rating funds,
securities exchanges and bourses, institutional and individual
investors, law firms, accounting firms, auditing firms, or any
institution the business of which is engaging in financial
activities as described in section 4(k) of the Bank Holding Act of
1956; may be subject to legal and regulatory obligations associated
with the USA PATRIOT Act, hereinafter collectively referred to as
"Financial Institution." Financial Institutions typically have few
resources available to them to assist in establishing and
maintaining necessary records.
[0007] Establishing and maintaining certifications required under
the USA PATRIOT ACT can be onerous to both a Financial Institution
and to a foreign counterpart seeking to provide required
information. Uncertainty can surround what the certification
requirements are and how to properly fulfill them. Directions given
by the U.S. Treasury Department estimate that a qualified person
may take approximately twenty hours to properly generate a
certification. This amount of work may need to be duplicated for
each request from each respondent bank. In addition, there exists
an increased likelihood of confusion, redundancy, inaccuracy and
contradiction if different entities acting on behalf of a single
correspondent bank provide certification to multiple respondent
institutions.
[0008] What is needed is a method and system to coordinate and
administer the certification process. Compiled certification
information should be situated in a known resource from which it
can be conveyed to a compliance department or government entity and
also be able to demonstrate to regulators that a Financial
Institution has met standards relating to risk containment.
SUMMARY
[0009] Accordingly, the present invention provides methods and
systems for managing Risk related to a certification process
through the utilization of a risk management clearinghouse (RMC).
The present invention provides for a certification, such as the
certification of a foreign correspondent bank addressing the USA
PATRIOT Act, to be accomplished by receiving risk management
certification information from a foreign bank and storing the
information in a computer server. A request for particular
certification information can be received and particular
certification information can be transmitted according to the
direction of the requestor and/or the provider of the information.
Information transmitted can include, for example, certification
materials.
[0010] In facilitating the risk management process, a RMC can
receive a request to register certification information from an
interested party or institution. Requests and information received
can be docketed, if desired.
[0011] In another aspect, a RMC can receive a request for guidance
relating to providing certification and responding to the request.
For example, in some embodiments, guidance can include ascertaining
the completeness of certification information received or notifying
appropriate parties of administrative obligations.
[0012] Still another aspect can include receiving updated
information relating to the certification and transmitting the
updated information to appropriate parties. In addition,
embodiments can also include requesting authorization to convey
information supplied by a party, such as, for example,
certification information, prior to conveying such information.
Records of any conveyance of information, or other action taken can
also be archived.
[0013] Embodiments can also include receiving information
descriptive of a risk management certification from an entity, such
as a foreign bank, and a network address of a resource storing a
risk management certification relating to the entity. The network
address of the resource storing the risk management certification
can be conveyed responsive to a request for information relating to
the foreign bank, or other entity described by the risk management
certification. Some embodiments can include receiving authorization
from the entity to convey the network address.
[0014] Embodiments can also include receiving notice of an updated
risk management certification and a network address of a resource
containing an updated risk management certification. Notice of the
updated risk management certification and a network address of a
resource containing the updated risk management certification can
be transmitted or otherwise conveyed to one or more recipients.
Notification of a renewal date can also be transmitted to one or
more appropriate parties.
[0015] Other embodiments of the present invention can include a
computerized system, executable software, or a data signal
implementing the inventive methods of the present invention. The
computer server can he accessed via a network access device, such
as a computer. Similarly, the data signal can be operative with a
computing device, and computer code can be embodied on a computer
readable medium.
[0016] Various features and embodiments are further described in
the following figures, drawings and claims.
DESCRIPTION OF THE DRAWINGS
[0017] FIGS. 1 and 1b illustrate block diagrams of some embodiments
of the present invention.
[0018] FIG. 2 illustrates a network of computer systems that can
embody a correspondent bank registry.
[0019] FIG. 3 illustrates a flow of exemplary steps that can be
executed while implementing some embodiments of the present
invention.
[0020] FIG. 4 illustrates a flow of exemplary steps that can be
executed while implementing other embodiments the present
invention.
[0021] FIG. 5 illustrates a flow of exemplary steps that can be
executed while implementing updates in some embodiments the present
invention.
[0022] FIG. 6 illustrates a flow of exemplary steps that can be
executed while implementing embodiments the present invention
utilizing a designated network address to locate a resource.
[0023] FIG. 7 illustrates a flow of additional exemplary steps that
can be executed while implementing embodiments the present
invention utilizing a designated network address to locate a
resource.
[0024] FIG. 8 illustrates an exemplary graphical user interface
that can implement various aspects of the present invention.
[0025] FIG. 9 illustrates an exemplary data structure that can be
utilized to implement certain aspects of the present invention.
DETAILED DESCRIPTION
[0026] The present invention includes a method and system for
facilitating the transfer of information relating to risk
management, such as, for example, information directed towards
compliance with the USA PATRIOT Act and certification of a foreign
correspondent bank. Generally, a foreign bank or other entity can
provide a RMC with information relating to compliance with
government requirements, or other information, and allow the RMC to
convey to information in whole or in part to interested parties.
Centralized distribution of certification related information can
facilitate consistent and accurate compliance with government
related requirements.
[0027] Referring now to FIG. 1 a block diagram of one embodiment of
the present invention is illustrated. In addition to other services
that an RMC system 106 may provide, such as those described in
related documents, an RMC system 106 can facilitate an exchange of
information required to manage risk associated with a foreign bank
101-103 and regulated affiliate 104. In some embodiments, an RMC
system 106 can act as a registry of information required for
certification of a foreign correspondent bank according to risk
management procedures, such as, for example, procedures required to
meet obligations set forth by the USA PATRIOT Act. The RMC system
106 can receive and maintain certifications 105 responsive to the
risk management procedures and make the certifications 105
available to one or more Financial Institutions 107, government
entities, or other Subscriber 108 or interested party. In
particular, the certifications 105 can he useful to manage risk by
fulfilling obligations set forth in the USA PATRIOT Act for a
Financial Institution 107 acting as a respondent bank to a foreign
correspondent bank.
[0028] For the purposes of this application, a "Shell Bank" can
include a foreign hank 101-103 without a physical presence in any
country. A physical presence can be a place of business that is
maintained by a foreign bank 101-103 and is located at a fixed
address, other than solely an electronic address, in a country in
which the foreign bank 101-103 is authorized to conduct banking
activities.
[0029] A "Correspondent Account", with respect to a Financial
Institution 107, can be an account established to receive deposits
from, make payments on behalf of a foreign Financial Institution
107, or handle other financial transactions related to such
institution.
[0030] A "Certification" 105 may be a compilation of information
utilized by a Financial Institution 107 to assist the institution
to manage risk related to dealing with a foreign Shell Bank.
Certification 105 can include, among other things, documentation
indicating that any Financial Institution 107 that maintains one or
more correspondent accounts in the United States for a foreign bank
101-103 maintain records in the United States identifying the
owner(s) of such foreign bank 101-103 and the name and address of a
person who resides in the United States and is authorized to accept
service of legal process for records regarding the correspondent
account.
[0031] A Certification 105 established with the RMC system 106 can
state that a foreign hank 101-103 that maintains a correspondent
account with a covered Financial Institution 107 certifies either
that it is not a Shell Bank; that it is a Shell Bank that it is a
regulated affiliate of a non-Shell Bank; or that it is a Shell Bank
that is not a regulated affiliate. In the case that a Shell Bank is
not a regulated affiliate, prevailing law may prohibit a covered
Financial Institution 107 from establishing or maintaining a
correspondent account with that foreign bank 101-102.
[0032] Independent of a bank's or other Financial Institution's
procurement of information, for certification or otherwise, a RMC
106 can gather and collect information relating to a Financial
[0033] Institution. Information can be collected, for example, from
public sources, such as government lists. Non-public information
gathered by a subscriber 107-108 can also be collected and stored
in a manner that will not violate prevailing law, such as, for
example, in a Proprietary Risk Management Server 211. In some
cases, the information may support or contradict information
provided by a certification, such as whether a bank 101-102 is a
Shell Bank.
[0034] Amendments to the anti-money laundering provisions of the
Bank Secrecy Act (BSA), which are included in the USA PATRIOT Act
may require that a Financial Institution 107 manage risk relating
to correspondent accounts by ascertaining certain minimum
information relating to the Financial Institution's 107 customers.
In particular, a Financial Institution 107 may manage risk relating
to correspondent accounts by certifying that it is not providing
correspondent accounts to foreign Shell Banks and taking reasonable
steps to ensure that a correspondent account provided to a foreign
bank 101-103 is not being used to indirectly provide banking
services to a foreign Shell Bank. Risk management procedures for a
Financial Institution 107 that provides a correspondent account to
a foreign bank 101-103 can include maintaining records relating to
the foreign bank's 101-103 owners as well as records of an agent in
the United States designated to accept service of legal
process.
[0035] Risk management procedures implemented by a Financial
Institution 107 may dictate, for example, that the Financial
Institution 107 should not establish, maintain, administer, or
manage a correspondent account in the United States for, or on
behalf of Shell Bank. In addition, the risk management procedures
may include taking reasonable steps to ensure that any
correspondent account established, maintained, administered, or
managed by a covered Financial Institution 107 in the United States
for a foreign bank 101-103 is not being used by that foreign hank
101-103 to indirectly provide banking services to a foreign Shell
Bank that is not a regulated affiliate.
[0036] A foreign bank 101-103 can certify, such as, for example, to
the RMC 106, that it is not a Shell Bank. Risk management
procedures can require that the RMC receive certification
specifying a physical address for the foreign bank 101-103 and a
regulator for the foreign bank 101-103. If a foreign bank 101-103
certifies that it is a regulated affiliate, the foreign bank
101-103 can be required to specify a name and address of a
non-Shell Bank with which the foreign bank 101-103 is affiliated
and a regulator for the non-Shell Bank and the regulated affiliate.
Certification information received by the RMC 106 can be stored and
organized for expeditious delivery to an interested party
authorized by parties involved to receive the information.
[0037] A foreign hank 101-103 can also certify either that it does
not provide banking services to any foreign Shell Bank, other than
a regulated affiliate; or that it provides banking services to a
foreign Shell Bank but will not use any of the correspondent
accounts with a U.S. Financial Institution 107 to provide banking
services to any foreign Shell Bank, other than a regulated
affiliate.
[0038] In another aspect, a foreign bank 101-103 can certify the
identity of its owner(s) and include street addresses, as well as
the identity and address of its agent for service of legal process
in the United States.
[0039] A foreign bank 101-103 can also certify that it will notify
each Financial Institution 107 in the United States at which it
maintains a correspondent account in writing within 30 calendar
days of any change in facts or circumstances previously certified
or contained in the annexes to the Certification 105.
[0040] In some embodiments, the RMC system 106 can be utilized to
effect notice, of any change in facts or circumstances previously
certified or contained in the annexes to the Certification 105. For
those Financial Institutions 107 on record with RMC system 106
notice can be accomplished via delivery of an electronic document,
printing remotely, facsimile, or hardcopy generated and physically
delivered. A RMC system 106 can also be utilized to notify
appropriate parties of administrative obligations such as, for
example, notice of a change in facts contained in a Certification
105.
[0041] Embodiments can also include providing a copy of any
certifications 105 to the Secretary of the Treasury and the
Attorney General of the United States, or their delegates.
[0042] Risk management procedures can establish that reporting
information required for Certification 105 is voluntary for a
foreign banking institution 101-103; however, failure to provide
information necessary to complete Certification 105 may preclude
the establishment or continuation of correspondent accounts with
the U.S. Financial Institution 107.
[0043] A subscriber 107-108 can include a Respondent Financial
Institution 107 or other subscribing entity 108, including, for
example: a regulator, a money transfer agency, bourse, an
institutional or individual investor, an auditing firm, a law firm,
any institution the business of which is engaging in financial
activities or other entity or institution who may be involved with
a financial transaction or other business transaction or any entity
subject to legal and regulatory compliance obligations with respect
to money laundering, fraud, corruption, terrorism, organized crime,
regulatory and suspicious activity reporting, sanctions, embargoes
and other regulatory risks and associated obligations.
[0044] Financial investments can include investment and merchant
banking, public and private financing, commodities and a securities
trading, commercial and consumer lending, asset management, rating
of corporations and securities, public and private equity
investment, public and private fixed income investment, listing to
companies on a securities exchange and bourse, employee screening,
auditing of corporate or other entities, legal opinions relating to
a corporate or other entity, or other business related
transactions.
[0045] FIG. 1A illustrates a scenario wherein a respondent
Financial Institution 107 or other subscriber 108 can receive a
Certification 105 from one or more foreign banks or affiliates
101-104 via an RMC 106. Certifications 105 registered with the RMC
system 106 can be readily accessible to the respondent Financial
Institution 107 or other subscriber 108 thereby facilitating
collection of certifications 105, wherein the respondent Financial
Institution 107 is relieved of having to ascertain a correct person
to contact within each foreign bank 101-104 from which it requires
Certification 105 and coordinate receipt of each Certification 105.
As illustrated, the present invention can make it possible for the
respondent Financial Institution 107 to only have to complete a
single access to the RMC system 106 in order to receive multiple
certifications 105, each from a separate foreign hank 101-102 or
from a non-shell Foreign Bank 103 and/or a regulated affiliate 104.
The Certification 105 can contain, information to assist a U.S.
Financial Institution 107 comply with prevailing law regarding
correspondent accounts and other regulations.
[0046] Embodiments can include information that is received from a
foreign bank 101-104 in any form that can accurately convey
information necessary to complete the Certification 105. For
example, information can he input into a graphical user interface
(GUI), submitted via hard copy, facsimile, scanned image, or any
other form of information conveyance. The RMC system 106 can store
the Certification 105 and convey it upon request.
[0047] Similarly, Certification 105 information can be retrieved by
a respondent Financial Institution 107 or other subscriber 108
using any available mechanism for conveying information, including,
but not limited to: scanned image, database record retrieval, text
file, facsimile, hard copy, data stored on a computer readable
medium, or other mechanism.
[0048] FIG. 1B is related to FIG. 1A and more clearly illustrates a
scenario wherein a correspondent Foreign Bank 101 seeking to open a
correspondent account can convey a Certification 105 to one or more
respondent Financial Institutions 107 and 109 or other subscriber
108. In some embodiments, the correspondent Foreign Bank 101 can
transmit information relating to the certification 105 to the RMC
system 106. The RMC system 106 can store the information and
generate a certification 105 and convey it to a respondent
Financial Institution 107 and 109 or other subscriber 108 upon
request of the correspondent Foreign Bank 101 or the Financial
Institution 107 and 109 or other subscriber 108. Embodiments can
also include transmission of a completed certification 105 to the
RMC system 106, such as an image documents comprising the
certification 105. The completed certification 105 can then be
transmitted by the RMC system 106 to a Financial Institution 107
and 109 or other subscriber 108.
[0049] Referring now to FIG. 2, a network diagram illustrating one
embodiment of the present invention is shown 200. An automated RMC
system 106 can include a computerized RMC server 210 accessible via
a distributed network 201 such as the Internet, or a private
network. A user 206-209, can use a computerized system or network
access device 202-205 to receive, input, transmit or view
information processed in the RMC server 210. A protocol, such as,
for example, the transmission control protocol internet protocol
(TCP/IP) can be utilized to provide consistency and
reliability.
[0050] In addition, a proprietary risk management (PRM) server 211
can access the RMC server 210 via the network 201 or via a direct
link 213, such as a T1 line, digital subscriber line (DSL), or
other high speed pipe. The PRM server 211 can in turn be accessed
by an affiliated user via a system access device 202-205 and a
communications network 201, such as a local area network, or other
private network, or even the Internet, if desired. For the purposes
of this application, any function or reference to an RMC server 210
can also include a PRM server 211, except that the PRM server 211
may be more appropriate to store and access proprietary information
that will not be shared outside of an organization except as
allowed by prevailing applicable law. In addition, in some
embodiments, a PRM server 211 may he utilized to calculate risk
quotients or other subjective valuations which an RMC server 210
may be limited from doing by an RMC 106 provider.
[0051] A system access device 202-205 used to access the RMC server
210 can include a processor, memory and a user input device, such
as a keyboard and/or mouse, and a user output device, such as a
display screen and/or printer. The system access devices 202-205
can communicate with the RMC server 210 to access data and programs
stored at the respective RMC server 210. A system access device
202-205 may interact with the RMC server 210 as if the RMC server
210 were a single entity in the network 200. However, the RMC
server 210 may include multiple processing and database
sub-systems, such as cooperative or redundant processing and/or
database servers that can be geographically dispersed throughout
the network 200.
[0052] The RMC server 210 can include one or more databases 212
storing data relating to risk management, and in particular to
certification of a foreign bank 101-103 or affiliate 104,
including, for example, docketing information and programming
capable of tracking relative dates and entities involved.
Information relating to and included in gathered certifications can
be aggregated into a searchable data storage structure. Gathering
data into an aggregate data structure 212, such as a data
warehouse, allows a RMC system 106 to have the data readily
available for processing a risk management search associated with a
Correspondent Bank 101-104 certification. Aggregated data 212 can
also be scrubbed or otherwise enhanced to aid in searching.
[0053] In one embodiment of enhancing data, data scrubbing can be
utilized to implement a data warehouse comprising the aggregate
data structure 212. Data scrubbing can be utilized to store
information in a manner that gives efficient access to pertinent
data. Scrubbing can facilitate expedient access to data
commensurate with business decisions that will be based upon Risk
management assessment provided.
[0054] Various data scrubbing routines can be utilized to
facilitate aggregation of Risk variable related information. The
routines can include programs capable of correcting a specific type
of mistake, such as an incomprehensible address, or clean up a full
spectrum of commonly found database flaws, such as field alignment
or misplaced data and move it to a correct field, or removing
inconsistencies and inaccuracies from like data. Other scrubbing
routines can be directed directly towards specific legal issues,
such as money laundering or terrorist tracking activities.
[0055] For example, a scrubbing routine can be used to facilitate
various different spelling of one name. In particular, spelling of
names can be important when names have been translated from a
foreign language into English. A data scrubbing routine can
facilitate risk variable searching for multiple spellings of an
equivalent name or other important information. Such a routine can
help correct database flaws. Accordingly, scrubbing routines can
improve and expand data quality more efficiently than manual
mending and also allow a subscriber 107-109 to quantify best
practices for regulatory purposes.
[0056] Typically a user 206-209 will access the RMC server 210
using client software executed at a system access device 202-205.
The client software may include a generic hypertext markup language
(HTML) browser, such as Netscape Navigator or Microsoft Internet
Explorer, (a "WEB browser"). The client software may also be a
proprietary browser, and/or other host access software. In some
cases, an executable program, such as a Java.TM. program, may be
downloaded from the RMC server 210 to the system access device
202-205 and executed at the system access device 202-205 as part of
RMC risk management software. Other implementations include
proprietary software installed from a computer readable medium,
such as a CD ROM. The invention may therefore be implemented in
digital electronic circuitry, computer hardware, firmware,
software, or in combinations of the above. Apparatus of the
invention may be implemented in a computer program product tangibly
embodied in a machine-readable storage device for execution by a
programmable processor; and method steps of the invention may be
performed by a programmable processor executing a program of
instructions to perform functions of the invention by operating on
input data and generating output.
[0057] Referring now to FIG. 3, steps that can be performed while
practicing the present invention are illustrated. From the
perspective of an RMC system 106 or RMC provider, at 310 a request
to register a risk management certification with the RMC system 106
can be received, such as, for example, via an electronic
communication, facsimile, hardcopy, or voice call. At 311, the RMC
system 106 can convey the certification materials to the entity
that wishes to register or the entity's agent. The materials can be
conveyed, for example, via electronic file transfer, e-mail,
facsimile, hardcopy, voice communication or other communications
vehicle. An exemplary certification that may currently be useful to
address obligations incurred under the USA PATRIOT Act is attached
hereto as Appendix A.
[0058] At 312, an RMC system 106 may receive a request for guidance
in providing the certification materials. Guidance may be
necessary, for example, to interpret obligations relating to what
needs to be certified in order to comply with various regulatory
requirements, such as those set forth in the USA PATRIOT Act and
the relative complexity of some information that may need
interpretation.
[0059] For example, in complying with the USA PATRIOT Act the task
of ascertaining who constitutes an "owner" that should be reported
can be subject to a fair amount of work and interpretation. An
owner can mean any person who is a large direct owner, an indirect
owner, and certain small direct owners. A person can mean any
individual, bank, corporation, partnership, limited liability
company, or any other legal entity, except that members of the same
family shall be considered one person; and voting shares or other
voting interests means shares or other interests that entitle the
holder to vote for or select directors (or individuals exercising
similar functions).
[0060] The USA PATRIOT Act indicates that a small direct owner may
or may not need to be reported depending on whether two or more
small direct owners in the aggregate own 25 percent or more of the
voting securities or interests of the foreign bank and are owned by
the same indirect owner. A large direct owner of a foreign bank can
be a person who owns, controls, or has power to vote 25 percent or
more of any class of voting securities or other voting interests of
the foreign bank; or controls in any manner the election of a
majority of the directors (or individuals exercising similar
functions) of the foreign bank. The identity of each large direct
owner is subject to reporting. If any large direct owner of a
foreign bank 101-103 is majority-owned by another person, or by a
chain of majority-owned persons, an indirect owner is any person in
the ownership chain of any large direct owner who is not
majority-owned by another person. If any two or more small direct
owners of a foreign bank in the aggregate own, control, or have
power to vote twenty five percent or more of any class of voting
securities or other voting interests of the foreign bank and are
majority-owned by the same person, or by the same chain of
majority-owned persons, the indirect owner can be any person in the
ownership chain of the small direct owners who is not
majority-owned by another person. Each indirect owner may be
subject to reporting.
[0061] Guidance relating to interpretation and compliance may be
needed as each foreign institution attempts to properly and
consistently provide certification to each U.S. Financial
Institution with which the foreign institution has a correspondent
banking relationship. Guidance and centralization offered by an RMC
106 can facilitate a cohesive certification and minimize confusion,
redundancy, inaccuracy and contradictions that may result from
multiple parties each interpreting and translating such guidelines
on their own. In addition, the amount of resources and
administration overhead associated with maintaining such records
can be lessened by a centralized approach.
[0062] At 313, guidance may be provided by the RMC system 106 via
online documentation, artificial intelligence programs, online
question and answer materials, live administrative assistance,
referral to a third party or other manner of responding to the
request for guidance. Some embodiments can include guidance that
ascertains the completeness of certification information conveyed
by a foreign bank 101-104, such as, for example guidance as to
whether entries have been set forth for all required inputs and a
document has been properly executed where required. Electronic
signatures may be sufficient in some embodiments to complete
execution.
[0063] Embodiments can also include a verification step which can
independently research the veracity of information put forth in a
certification. Other embodiments can convey any information put
forth with no value judgment, research or other indication relating
to the veracity or completeness of any information conveyed in a
certification.
[0064] At 314, the RMC system 106 can also receive a risk
management certification and at 315 the certification can be stored
in a retrievable data storage device. In addition, at 316 the
information descriptive of or relating to the certification, as
well as information descriptive of the entities involved, can be
docketed. The docket can be utilized to track critical dates,
entities involved, contact information and the like. In some
embodiments, docketing can include parsing information contained in
a Certification 105 and storing the parsed information in a
database in order to facilitate analysis and docketing of the
information. For example, data can be configured to track dates
relating to the certification, dates relating to actions taken,
contact information, requests, authorizations and other pertinent
information. Other embodiments can include docketing information
descriptive of a Certification 105.
[0065] At 317, the RMC system 106 can notify interested parties of
administrative obligations, such as the obligation to re-certify
every two years for compliance with the USA PATRIOT Act. At 318,
the RMC system 106 can receive updated information, such as
information related to or otherwise comprising a certificate
renewal and at 319 the updated certification information can be
transmitted to interested parties.
[0066] Referring now to FIG. 4, additional steps that can be
performed while implementing some embodiments of the present
invention are illustrated. At 410, a RMC system 106 can login an
RMC subscriber and at 411 the RMC system 106 can receive a request
for a particular certification. The login can be accomplished in
any manner that serves to identify the subscriber and allow for
communication between the RMC system 106 and the subscriber, such
as via login at a website or other electronic interface. At 412,
responsive to a request for a certification, the RMC system 106 can
request authorization to convey the certification from a party
designated to grant such authorization, such as a compliance
officer for the foreign bank 101-104 for which the certification is
requested.
[0067] At 413 and 414 the RMC system 106 may receive a response to
the request for authorization to convey the certification. At 413 a
denial of required authorization can be received. Accordingly, at
415 the RMC system 106 can transmit a denial for the request of
certification authorization. Alternatively, at 414, the RMC system
106 may receive an approval for the request for authorization and
at 416 transmit the certification to the requestor.
[0068] At 417, a request for a certification can be archived, along
with a related response. At 418, the RMC system 106 can also be
utilized to generate one or more reports relating to a request for
certification and associated action resultant to the request.
[0069] Referring now to FIG. 5, steps relating to updating risk
management information according to some embodiments of the present
invention arc illustrated. Risk management information which can be
updated can include certification information utilized to comply
with the USA PATRIOT Act. At 510, a RMC system 106 can receive
updated information, such as a change in contact information,
change in ownership, change in agent to receive service of a
subpoena or other change. At 511, the received updates can be
docketed to facilitate in processing and at 512, a list of
recipients who are to receive the updates can be compiled.
Recipients can include, for example, financial institutions or
other subscribers 107-109 that have received a previous
certification. At 513, updates can be transmitted or otherwise
conveyed to the members included on the list of recipients.
[0070] Referring now to FIG. 6, some embodiments of the present
invention can include an RMC system 106 which does not actually
receive risk management certification information, such as a
certification to comply with the USA PATRIOT Act, but instead, at
610 receives a description of a certification 105 and a designated
network address at which the certification can be accessed. A
designated network address can include, for example, a TCP/IP
address, a uniform resource locator, or any other identifying
mechanism that can direct access to a particular network resource.
At 611, the RMC system 106 can receive a request to convey a
particular certification and at 612 the RMC system 106 can request
authorization to convey the designated network address containing
the particular certification. At 613 and 614 a denial or
authorization of the request to convey the designated network
address can be received. At 613 a denial of authorization is
received and accordingly, at 615 the RMC can transmit a denial of
the request for the certification. At 614 an approval granting
authorization is received, and accordingly, at 616 the RMC system
106 can transmit or otherwise convey the designated network address
at which the certification information can be accessed.
[0071] Relatedly, as illustrated in FIG. 7, in some embodiments, at
710, a subscriber, such as a respondent Financial Institution or
other entity 107-109, can request certification information from
the RMC system 106 and at 711 receive a designated network address
of a resource that contains a related certification 105 which is
available via the network 201. At 712, a respondent Financial
Institution or other entity 107-109 can access a network resource
located at the address conveyed by the RMC system 106 and at 713
receive the certification information.
[0072] Referring now to FIG. 8, an exemplary GUI 800 that can be
utilized while practicing the present invention is illustrated. A
portion of a display 801 can display information that relates to a
respondent Financial institution, such as a U.S. Bank. Another
portion of the display 802 can include information descriptive of a
correspondent Foreign Bank 101-103 and any regulated subsidiaries
104. Still another portion 803 can contain certification
information. A portion 804 can also display instructions relating
to how to obtain a certification 105.
[0073] Referring now to FIG. 9, a portion of a design of a database
that can be utilized while implementing the present invention is
illustrated. The database 900 can include a field containing data
descriptive of a respondent Financial Institution 901 as well as a
field containing data descriptive of a correspondent institution
902. Another field can hold data descriptive of a related
certification 903.
[0074] A number of embodiments of the present invention have been
described. Nevertheless, it will be understood that various
modifications may be made without departing from the spirit and
scope of the invention. For example, certified hard copy documents
can be gathered and scanned into the RMC system 106 such that the
scanned image can be forwarded to a subscriber as appropriate. In
addition, certification data stored with the RMC 106 can indicate
an agent for legal service which can be utilized in conjunction
with an electronic subpoena service to serve a subpoena. Still
other embodiments include certification data and/or documents that
will expire and be locked, such as with encryption after a set
period of time has elapsed, such as, for example a period for which
the data will remain current. Accordingly, other embodiments are
within the scope of the following claims.
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