Supervision News Flash

Financial institutions are struggling to balance rising fraud risks with the need to maintain strong BSA/AML programs, especially as digital channels expand. Effective fraud and BSA coordination—supported by clear communication, strong internal controls, and timely SAR reporting—is essential to protecting customers and ensuring regulatory compliance. This article highlights key fraud trends, including elder exploitation, new‑account fraud, check fraud, scams, and account takeovers, and emphasizes that training and collaboration between fraud and BSA teams help institutions detect issues earlier and respond more effectively.

The Richmond Fed publishes a quarterly Banking Conditions Report focusing on key metrics to help equip bank supervisors and bankers with valuable insights into Fifth District and national financial performance and emerging trends. We hope to use the data, as well as the examiner perspective, to share insights into the District's financial institution safety and soundness. This article takes a closer look at the recent modest rise in non-performing loans (NPLs) in the Fifth District—particularly in commercial and industrial (C&I) loans.