BoA fined $1.2bn over "egregious" AML deficiencies

Bank of America’s massive $1.2 billion fine serves as a wake-up call for any business providing credit or payment terms to customers. While this penalty targets a major bank, the ripple effects will hit your storefront soon. Regulators are cracking down on how financial institutions verify customer identities and track suspicious transactions. For retailers, this means your lending partners are about to get much stricter. Expect more friction during the financing application process as lenders tighten their compliance checks. Lenders will likely update their Know Your Customer (KYC) requirements. They may ask for more documentation from your customers or reject applications that would have passed six months ago. You should prepare your sales staff for potential delays in approvals. Explain to your team that these extra steps are mandatory to prevent fraud and money laundering. If you use a third-party financing platform, check in with them to see if their onboarding flow is changing. Staying ahead of these shifts prevents lost sales at the point of purchase. Do not wait for a high-value transaction to fail before you review your lender's new compliance protocols.

Source: Finextra — Lending

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