Transcript The New Risk Assessment Standards

Bank Secrecy Act (BSA)
Office of Foreign Assets Control
(OFAC)
BSA Timeline
1970 – enacted by Congress
1986 – Money Laundering Control Act
1990 – FinCEN created
1994 – FinCEN to administer BSA
1996 – Depository institutions to file SARs
1991 – USA Patriot Act enacted
BSA Compliance Program
Requirements
Must be in writing and include the following:
• Internal policies, procedures, and controls
• Designation of a compliance officer
• Ongoing employee training program
• Independent audit function
Compliance with BSA
• Protects credit union’s reputation
• Positive impact on the community
• Penalties, fines, possible imprisonment for
BSA violations
Common Compliance Mistakes
•
•
•
•
Failure to have a written/adequate
compliance program
Failure to implement the program
Lack of SAR reviews
No independent review of the compliance
program
BSA – Typical Scenarios
• Currency Transaction Reports (CTR)
• Structuring to avoid CTR reporting
• Report of International Transportation of
Currency or Monetary Instruments
• Designation of an Exempt Person
• Suspicious Activity Report
• Recordkeeping requirements
• Member Identification Program
Where to get Help!!!!
•
•
•
•
www.msk.gov, www.irs.gov, or www.fincen.gov
BSA forms 1-800-829-3676
MSB education materials 1-800-386-6329
FinCEN Regulatory Helpline 1-800-949-2732
Office of Foreign Assets Control
(OFAC)
• Administers and enforces economic
sanctions
• Primarily against countries and groups of
individuals
• Many predecessors
• Formally created in 1950
OFAC Compliance Issues
Written policy
Annual approval
Adequate training
Responsible person
OFAC – Typical Scenarios
• Specifically Designated Nationals
• Blocked Entities
• FinCEN every two weeks send new
current listing
• OFAC list
• Run lists against customer lists
• Blocking transactions
USA Patriot ACT
Uniting and Strengthening America by
Providing Appropriate Tools Required to
Intercept and Obstruct Terrorism
KNOW YOUR MEMBERS!!!!!!
Questions
Contact Information
Thomas J. O’Donnell
518-694-8036
[email protected]