Posted by infotrellis on Monday, Aug 8, 2016 @ 7:04 AM

Banking Regulations

Banking Regulations – Overview

Managing regulatory issues and risk has never been so complex. Regulatory expectations continue to rise with increased emphasis on the institution’s ability to respond to the next potential crisis.Financial Institutionscontinue to face challenges implementing a comprehensive enterprise-wide governance program that meets all current and futureregulatory expectations. There has been a phenomenal rise in expectations related to data quality, risk analytics and regulatory reporting.

Following are some of the US regulations that MDM and customer 360 reports can be used for compliance:

FATCA (Foreign Account Tax Compliance Act)

FATCA was enacted to target non-compliance by U.S. taxpayers using foreign accounts. The objective of FATCA is the reporting of foreign financial assets. The ability to align all key stakeholders, including operations, technology, risk, legal, and tax, is critical to successfully comply with FATCA.

OFAC (Office of Foreign Asset Control)

The Office of Foreign Assets Control (OFAC) administers a series of laws that impose economic sanctions against hostile targets to further U.S. foreign policy and national security objectives. The bank regulatory agencies should cooperate in ensuring financial institutions comply with the Regulations.

FACTA (Fair and Accurate Credit Transactions Act)

Its primary purpose is to reduce the risk of identity theft by regulating how consumer account information (such as Social Security numbers) is handled.

HMDA (Home Mortgage Disclosure Act)

This Act requires financial institutions to provide mortgage data to the public. HMDA data is used to identify probable housing discrimination in various ways.

Dodd Frank Regulations

The primary goal of the Dodd-Frank Wall Street Reform and Consumer Protection Act was to increase financial stability. This law places major regulations in the financial industry.

Basel III

A wide sweeping international set of regulations that many US banks must adhere to is Basel III. Basel III is a comprehensive set of reform measures, developed by the Basel Committee on Banking Supervision, to strengthen the regulation, supervision and risk management of the banking sector.

What do banks need to meet regulatory requirements?

To meet the regulatory requirements described in the previous section, Banks need an integrated systems environment that addresses requirements such as Enterprise-wide data access, single source of truth for customer details, customer identification programs, data auditability & traceability, customer data synchronization across multiple heterogeneous operational systems, ongoing data governance, risk and compliance reports.

How MDM can help?

master data management

Enterprise view of customer data

MDM solutions providean enterprise view of all customer data to ensure that a customer is in compliance with Government imposed regulations (e.g. FATCA, Basel II/III, Dodd Frank, HMDA, OFAC, AML etc.) and facilitate data linking for easy access.

Compliance Users

Users who satisfy the compliance criteriawill be able to retrieve the customer information such as name, address, contact method and demographics from the MDMsolution. They will be able to ensure customer compliance while creating reports, performing reviews and monitor the customer against watch lists.

Compliance Applications

FATCA supporting applications, Dodd Frank reporting applications, HMDA compliance reporting applications, Basel II & III compliance applications receive a data extract from the MDM solution containing detailed customer information such as name, addresses, contact methods, identifiers, demographics and customer to account relationships that enhance compliance reporting and customer analytics.

Compliance users can ensure compliance with all FATCA laws, create reports, link customer information to create HMDA reports and provide complete financial profile of all commercial customers to ensure compliance with Basel II & III regulations

Regulatory Risk Users

Regulatory risk users will be able to use customer data from MDM solution, create reports on an ad hoc basis, and perform annual reviews to ensure customer is compliant with risk regulations. These users will also be able to check if customers are on existing watch lists through pre-configured alerts and update the MDM solution as required during annual reviews.

Regulatory Risk Applications

MDM solution supplies detailed customer information such as name, addresses, identifiers, demographics, and customer to account relationships to Applications supporting AML, OFAC data, KYC, fraud analysis so that they can determine compliance to regulations such as AML. OFAC standards, determine if the proper KYC data has been captured for all customers and monitors fraudulent activities of any customer.

MDM solution will receive a close account transaction from the AML applications if the regulatory risk user determines the customer relationship must be exited for AML non-compliance.OFAC applications update customer’s watch list status within the MDM solution and send add/update/delete customer alert transactions to monitor customers on OFAC watch lists.


MDM solutions when implemented properly, can provide critical information to banks who have to comply with a number of regulations across many countries. At InfoTrellis, we have helped many organizations achieve these goals through IBM MDM implementations. You can contact us for further queries by sending an email to

 About the Author

Greg Pierce

Greg is a Senior MDM Business Architect at InfoTrellis. He has helped many clients across banking, insurance and retail clients actualize value out of their MDM investments.

Topics: Banking RegulationsX data lake for banking Data Management Consulting Services IBM MDM Master Data Management Master data management Banking Regulations master data management tools

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Posted by Purnima Borate on Tuesday, Apr 12, 2016 @ 12:32 PM

Data Governance is the process of understanding, managing and making the critical data available with the goal to maximize its value and to ensure compliance.

Data Governance is an important and imperative area for Enterprises that want to realize full value from the data available with them.  InfoTrellis’ Data Governance Methodology follows a multi-phased iterative approach with 4 stages – Initiate, Define, Deploy and Optimize. This article lists the important considerations that are part of the Initiate stage of our Data Governance Methodology.

The Debate– Small or Big? The very first step of Data Governance is also the most ambiguous for most enterprises. The most common debate is whether to start an independent Data Governance program across enterprise or to start with specific problem at hand and then scale big. Most enterprises that are successful with Data Governance start small with a specific domain or business area to solve a data issue and then expand. The few enterprises that aim for enterprise wide Data Governance, break their program in small iterative steps to achieve success. So whatever the approach, – small or big – having small iterative steps is the key. It is critical to resolve this debate and finalize on the strategy before embarking on further activities.

Maturity Assessment – Assessing the current state of information management is essential to understand why things went wrong and how they can be fixed. Clients can adopt any of the leading Maturity Standards for their Data Governance Program including the one from InfoTrellis. These standards are referenced to mark the current maturity level of a particular business area. It is a normal scenario to have different maturity levels for different business areas of an enterprise. We suggest that specific prescriptive roadmap be defined considering the individual maturity level of each area. The maturity assessment needs review after each iterative deployment of Data Governance policies.

Data Governance Roadmap– The roadmap defines the steps to be taken to reach the desired state of Data Governance. This can be specific to a business area at the start and can be refined based on each of the incremental Data Governance deployments.

Secure Sponsorship – A compelling business case highlighting the business problem, its impact on revenue and cost and how it can be resolved by Data Governance, is important for getting the attention of executives and the subsequent sponsorship. Many Data Governance programs lose steam mid-way due to inadequate sponsorship. Executives have to continuously send messages to the team, educating and reinforcing the importance of achieving data governance goals.

Assign an effective Program Manager – Data Governance programs are complex programs requiring top notch process and people skills and needs continuity. Hence identifying the right program manager with clearly defined roles and responsibilities is very important for a successful program. We have seen many programs suffer due to ambiguous or frequently changing Program Managers.

In conclusion, each enterprise begins its data governance program differently. But addressing each of the above considerations and activities proactively helps setup a path to success.

Check out the Part 2 of this 4 part series on Data Governance from InfoTrellis – Define your Data Governance
Please send us a note with your queries and feedback.

Topics: Data Governance programs Data Governance Solutions Data management consultants Data Management Consulting Services Master data management consultant

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