Jeff Alberts, co-head of the firm's Financial Institutions Group, spoke with Law360's Jon Hill about the approaching global recession, and the crucial steps banks must face "as they enter a period when Ponzi schemes may start to break down and emerge from the shadows."
According to Hill, with current projections surpassing the grim state of our economy following the 2008 financial crisis, "the conditions are right for more Ponzi schemes to unravel just as Madoff's did more than a decade ago." Yet Hill notes that "...economic downturns have a way of making investors more tight-fisted and less inclined to believe in the eye-popping returns that fraudsters may promise."
Alberts, among other attorneys, agree that keeping the focus on anti-money laundering compliance and "know-your-customer requirements" are critical steps for banks at this time. He asserts that compliance refreshers are of particular use during a time when employees are dealing with an onslaught of other personal and business distractions.
Alberts notes that “[if] a bank went out of its way to try to ensure that its employees were able to identify risks to the bank or risks to the financial system such as violations of sanctions or anti-money laundering laws, it will always be looked on favorably.”
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