Similar to identity theft, this type of fraud happens when an unauthorized individual gain access through online banking applications, capturing the account information to create and write bad checks.
An adverse action notice is a document sent to a loan applicant stating a bank’s rationale for denying a loan. It may also contain a counteroffer, such as a lesser amount or a request for an approved co-borrower.
The term “aging exceptions” refers to a group of critical exceptions that have not been resolved within a reasonable amount of time.
Altered check fraud occurs when a fraudster changes the amounts and Payee from a stolen check.
Audit and exam prep is a process that financial institutions go through in order to adequately prepare for upcoming audits and exams.
An authorized signer form is a document that allows an account holder to grant a range of clearance levels to individuals to perform certain functions within a bank account.

Related Entities in Banking

Related entities are the relationships between a financial institution’s customers or members and their accounts. Related entities may be:

  • Two people
  • A person and a business
  • Two businesses

Related Entities and Compliance

A bank or credit union’s legal lending limit caps the amount that can be loaned to a borrower. Legal lending limits help financial institutions reduce exposure to loan defaults. Tracking related entities helps a bank or credit union remain in compliance with these lending regulations.

How Related Entities Documenting 

Lending decisions often require the banker to obtain a global view of the customer or member’s relationships with related entities. Unfortunately, tracking related entities in a core system can be challenging and creates time-consuming work to understand:

  • All accounts under the customer’s name
  • Trusts on which a person is listed
  • Accounts held by the customer’s family members

Identifying individual account holders who are involved in specific business accounts can be especially difficult, since a customer could be part of multiple corporations, LLCs, etc.

Leveraging Tech to Connect Related Entities

Some banks and credit unions use account management software to tie related entities together for a comprehensive view of a customer and his or her relationships. For example, AccuAccount offers a “Related Entities” report that lists all linked customer and member accounts. Related entities information also appears on every AccuAccount customer page, displaying the full relationship of the account holder. It also provides clarity to understand other parties tied to that customer.

Compliance Tools & Tips for Bankers

Looking for more information about compliance in the banking industry? Be sure to check out our extensive resource library with free spreadsheets, whitepapers, and eBooks.

Browse our banking definitions page for more terminology.

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