Know Your Employee (KYE): When the First Line of Defense Becomes the Weakest Fence

The cases of TD bank and the Equity Group illustrate that employees can become the weakest links within a financial institution’s defense against money laundering and fraud. Employees hold an advantageous position given their intimate knowledge of systems, electronic and procedural, and with the right motivation, such as kickbacks and bribes, can become creative to bypass these systems to the detriment of the organization and their own demise when eventually exposed.

What are the best practices in KYE compliance that organizations can employ to mitigate employees risk of becoming the weakest link?

Lets explore in Know Your Employee (KYE) – When the First Line of Defense Becomes the Weakest Link