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Compliance: "Red Flags" and The Five Stages of Grief: The industry's reaction to new bank regulations follows a very similar pattern. With so many new rules of late, that pattern has become well etched.
- Article from:
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Bank Technology News
- Article date:
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June 1, 2008
- Author:
- Sausner, Rebecca
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Everyones familiar with Elisabeth Kubler-Rosss five stages of grief; the financial industrys reaction to new regulatory requirements is just as predictable, though more amusing.
Consider the November pronouncement by the Federal Trade Commission that banks (and car dealers, and lots of other formerly little-regulated entities) would have one year to come into compliance with the Red Flags provisions of the FACT Act. In case you missed them, the Readers Digest version of the rules is that institutions must identify and list any red flags, or indicators, of potential identity theft; describe how theyll detect those red flags; provide appropriate responses to the indicators ...