Mar 012011
 

The sheer amount of time, effort and money compliance required last year was enormous.  But now that Dodd-Frank Wall Street Reform and Consumer Protection Act passed, “enormous” does not begin to describe the required effort and cost, as described by Kari English, senior editor of BankNews in an article entitled ‘Be Prepared For More Compliance‘. The American Bankers Association said the Dodd-Frank Act will create a “tsunami of new rules and restrictions” and estimates the act will create about 5,000 pages of new regulations. To prepare for the onslaught, Michael Brauneis, managing director in the regulatory risk practice for Protiviti, an industry consulting firm suggests evaluating how many people were dedicated to overdraft protection compliance and for how long. Use that to extrapolate how much more of a burden the bank thinks Dodd-Frank will be. Brauneis estimated that Dodd-Frank will be 15–20 times the burden that overdraft protection represented. No matter how much you dislike complying with bank regulations, it is not going away and it definitely is not going to get easier. But taking a proactive, risk-based approach to compliance might make it more tolerable and prevent mole-whacking, which is always a good thing.  

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