FINANCIAL services are facing a new set of conditions after US authorities announced the banks were facing a crackdown on the banking industry.
The US Justice Department said banks were required to provide information to the authorities regarding suspicious activity, a requirement that was part of a recent agreement between the Obama administration and the banks.
The banks will be required to notify the authorities of any financial activity that is not legal, and report any suspicious activity to the US Securities and Exchange Commission.
This is in addition to a requirement imposed by the Dodd-Frank Act.
In December, US Attorney General Eric Holder announced a number of steps that will require banks to disclose their customer names, financial account numbers, account balances, accounts with insufficient funds, and customer accounts that have not been closed.
The new rules are part of an agreement that was struck between the US Treasury and the US Department of the Treasury, the Department of Justice and the Federal Reserve.
There are three major categories of information the US Government has to report to the banks, with the first being customer account names, which can be accessed from the website of the Federal Deposit Insurance Corporation (FDIC).
The second category is account balances and account balances that are less than $50,000.
The third category is accounts that are between $50 and $10,000 and are less then $1,000 or more than $10 million.
In addition, the banks will have to notify federal regulators if they have received an alert regarding a customer account that was closed and that is subject to the financial institution’s account closing policy.
The FDIC is responsible for verifying the accuracy of the information provided by the bank.
The Justice Department has also announced it will also impose sanctions on banks that fail to comply with the new financial security rules.
These sanctions are aimed at ensuring that US financial institutions do not provide their customers with a way to access information they do not have a legal right to access.
The department said in a statement on Friday:”The Department of Treasury and Federal Reserve have announced a series of steps to strengthen the banking and financial system in the United States and to prevent the proliferation of fraudulent activity.
We will continue to work with our banking partners, regulators, and others to ensure the integrity of the financial system.”
Read more:Finance minister: US regulators need to do more to fight fraudIn a statement, the Irish Finance Minister, Michael Noonan, said:”I am pleased that the United Nations has finally recognised that we cannot afford to be complacent and allow banks to continue to evade and cheat their customers, and I hope that this will encourage the other governments to follow the example of the United Kingdom and take their own actions.”
Irish Financial Services Authority (IFS) chief executive Jim O’Connor said that the new measures will have a positive impact on the Irish banking sector.
The Financial Services (Regulation) Authority (FSA) said the changes were part of its ongoing efforts to improve the financial services environment in Ireland.
Read more”The new regulatory regime will help ensure that financial institutions that engage in financial misconduct and provide services to the public are held accountable,” said FSA chief executive John McNamara.
“In addition to the reporting requirements, the new regulation will also require banks and financial institutions to provide financial records and accounts information, and it will help address the issue of money laundering and financial crime.”
The FSA is also working with the US Federal Reserve and the Treasury to develop a set of measures that will be implemented over a three-year period.
The FSA has said the new regulatory scheme will make it more difficult for financial institutions in the UK and the rest of Europe to operate.
“This will be especially effective in countries with a relatively high level of economic activity and with relatively high levels of debt,” the FSA said.