Coming FROM a regulator and TO a company near you...
RBS was recently fined £5.6m due to the lack of poor IT Governance controls. As regulators become more savvy and increasingly understand that the primary backbone for business processes and their controls are IT systems, you will see a greater number of these types of fines being levied where IT Governance controls are specifically cited.
Here are a couple of highlights from the UK Financial Services Authority Decision Notice:
"RBSG’s automated screening failed to screen the majority of trade finance SWIFT messages generated in the international trade transactions that it carried out.""After the screening systems used to check customers and payments against the Treasury list had initially been set up, RBSG failed to ensure that the design and implementation of the ‘fuzzy matching’ capabilities in the screening software – used to identify close matches to the Treasury list – continued to operate satisfactorily. "
Here is the public notice release: RBSG Fined by FSA.
Your comments and thoughts are welcomed.
Mark Brooks
