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EXAMINATION AND ENFORCEMENT ISSUES:
BEYOND THE PILLARSThe AMLA Third Annual
Full Day BSA/AML ConferenceOctober 4, 2013
Presented by:
John M. [email protected]
Chicago, Illinois(312) 984-3217
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Risk Assessment
• Size
• Complexity
• Geographic footprint
• Customer base
• Products / services
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Elements• Internal controls to ensure ongoing
compliance
• Independent testing
• Individual responsible for coordinating / monitoring compliance
• Appropriate training for employees and directors
• Customer Identification Program
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Internal Controls
Policies, procedures and processes designed to limit and control risks and achieve compliance
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Internal Controls - Recommendations
Policies and Procedures
• Clearly written, comprehensive, and current
• Organized and tailored
• Useful to train others
• Document evidence of adherence
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Internal Controls – Recommendations (cont.)
Monitoring and Reporting System• Identification or alert of unusual
activity• SAR decision-making, completion
and filing• Escalation criteria to close account
and notify law enforcement• Analysis of relationship when repeat
SARs filed
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Independent Testing
• Conducted either by internal audit department or qualified third party
• Performed by individuals independent of compliance program
• Conducted at least annually
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Independent Testing - Recommendations
• Proper involvement of BSA Officer
• Level of scope
• Appropriate transaction testing
• Assessment and validation of automated monitoring system
• Results provided directly to Board
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BSA Officer
• Board designates individual• Comprehensive knowledge of BSA and
related regulations• Implements Board policies and directives• Coordinates and monitors day-to-day
compliance• Ensures that employees adhere to
policies, procedures and processes
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BSA Officer - Recommendations
• Appropriate expertise, time, and resources
• Periodically meet with employees across bank
• Succession planning
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Training
• Employees and directors receive appropriate training relevant to responsibilities
• Comprehensive, ongoing and documented
• Incorporates developments and changes
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Training - Recommendations
• Include board of directors
• Updated requirements
• Compliance trends and hot topics
• Changes to compliance program
• Include policies and procedures
• Documented and noted in minutes
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Customer Identification Program• Assess customer BSA risk at account
opening• Develop understanding of normal and
expected customer activity• Policy on account opening refusal and
closing accounts• Monitor high risk accounts and compare
anticipated to actual activity• Risk-based EDD procedures (cash
businesses, service providers, PEPs, etc.)
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QUESTIONS?
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EXAMINATION AND ENFORCEMENT ISSUES:
BEYOND THE PILLARSThe AMLA Third Annual
Full Day BSA/AML ConferenceOctober 4, 2013
Presented by:
John M. [email protected]
Chicago, Illinois(312) 984-3217