Wire transfers will continue to be an integral payment option for corporations and consumers alike. The main wire systems used in the U.S. are Fedwire, CHIPS, and SWIFT. It is important to understand how wire payments are processed, settled, the participants involved, as well as the rules and regulations governing wires.
The benefits of every payment system program bring a variety of risks inherent in offering these services. The FFIEC Guidance lists the following areas related to managing Wire Transfer risk:
Identify and assess exposure to legal and compliance risks, including BSA/AML and OFAC compliance
Understand the operational risks (for example, staff training and disaster recovery) and evaluate the controls in place to mitigate the risks
Understand the potential for fraud and evaluate the controls in place to mitigate fraud risk
Evaluate information security risks and technology-related operational risks associated with network applications
Assess risks related to compliance with remittance transfer rules and examination guidance
Here are some tools and resources that you may find helpful.
Wire Transfer Risk Review Service
WesPay Advisors offers a Wire Transfer Risk Review Service that provides your management team with a professional opinion of your Wire Transfer risk controls and suggestions for improvement.