What might be a consequence of failing to comply with documentation requirements?

Failing to comply with documentation requirements can lead to significant legal repercussions for the financial institution. Regulatory bodies enforce strict compliance standards to ensure that banks operate within the law, protecting both the customers and the institution. Noncompliance can result in legal actions, fines, or penalties from regulatory authorities, which can damage the institution's reputation and financial standing. Moreover, legal issues can also lead to increased scrutiny from regulators in the future, which may further complicate the institution's operations and compliance processes. This demonstrates the importance of adhering to documentation standards to mitigate risks associated with legal repercussions.