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Key Components of Passing NCUA, State or Treasury Assessments for the Bank Secrecy Act HISTORY OF LAWS AND REGULATIONS The BSA was enacted in October 1970. Pursuant to the authority granted to it under the act, the United States Department of the Treasury adopted a regulation implementing its provisions, effective in July 1972. A separate law, known as the Currency and Foreign Transactions Reporting Act, was enacted in September 1982, and the Treasury Department amended its regulation to incorporate the requirements of this second act. The BSA was further amended by the enactment of the USA PATRIOT Act in 2001. This act is intended to further deter money laundering and is particularly aimed at preventing the transfer of funds intended for use in terrorist activities. The act tightens recordkeeping and reporting requirements and permits financial institutions to share information with one another in order to better identify and report to the federal government concerning activities that may involve money laundering or terrorist activities. All three of these acts are considered together under the popular name Bank Secrecy Act (BSA). PURPOSE AND SCOPE Congress recognizes that records maintained by “banks” have a “high degree of usefulness in criminal, tax, and regulatory investigations and proceedings.” The purpose of the BSA is to require financial institutions to maintain such records and to report transactions that they find have such a high degree of usefulness. The USA PATRIOT Act extends these purposes, aiming particularly at the financial activities of terrorists. APPLICABILITY; EXEMPTIONS None Applicable. LIABILITY PROVISIONS Criminal and Potentially Millions $$$$$$$$$. Copyright©1994-2010 by Credit Union Resources & Educational Services, LLC. All rights reserved. Revised February 2010 32
NOTE: The BSA also contains a “whistleblower” provision in section 5323. A person who provides original information that leads to a recovery by the secretary of the Treasury of a civil or criminal fine or penalty that exceeds $50,000 may receive an award from the secretary. The amount of such an award is at the discretion of the secretary, but with a maximum of 25 percent of the amount collected (up to a maximum of $150,000). THE FIRST STEP: It is All About the Assessment and Due Diligence: 92-2006: Community Plan Notice // Revisions to Bank Secrecy Act Examination Manual -- Revised (Issued July 28, 2006) Review Risk Assessment Worksheets and Methodology: READ FFIEC BSA-AML Manual DOCUMENT YOUR RISK ASSESSMENT BSA Assessment Tools Subfolder B1- Risk Assessment -- General Assessment Tool (9-2008) B2- Risk Assessment -- Q & A B3- Risk Assessment -- High Risk Entities B4- Risk Rating Guide for High Risk Entities B5- High Risk Checklist Tool FILE SUSPICIOUS ACTIVITY REPORTS Guidance on Properly Filing and Documenting SARs The Credit Union should be familiar with and follow the guidance in the following resources: Copyright©1994-2010 by Credit Union Resources & Educational Services, LLC. All rights reserved. Revised February 2010 33
Page 1 and 2: Compliance Update - I REGULATORY AN
Page 3 and 4: Introductory Notes: Basic Obligatio
Page 5 and 6: performed by boards of directors. T
Page 7 and 8: What if an applicant “volunteers
Page 9 and 10: Please answer the following questio
Page 11 and 12: MULTIPLE ISSUES AND RESOURCES - SOM
Page 13 and 14: • Review of the negative shares r
Page 15 and 16: illustrates how certain provisions
Page 17 and 18: SAMPLE CREDIT UNION BUSINESS PLAN M
Page 19 and 20: EMPLOYMENT AGREEMENT Revise to addr
Page 21 and 22: 13. Evaluate the job performance of
Page 23 and 24: 2. By Employer For No Cause. Employ
Page 25 and 26: Vendor Due Diligence II Security As
Page 27 and 28: Vendor Due Diligence VII TERM AND T
Page 29 and 30: Vendor Due Diligence XII Backgroun
Page 31: Monitoring the Vendor At a minimum,
Page 35 and 36: (5) Confidentiality of reports. SAR
Page 37 and 38: PRIVACY - INFORMATION SECURITY Priv
Page 39 and 40: Disposal of Consumer Reports and Ot
Page 41 and 42: Compliance Update - II REGULATORY A
Page 43 and 44: Introductory Notes: Knowing if you
Page 45 and 46: I. POLICY AND GUIDELINES Portions O
Page 47 and 48: any CUSO. [Gifts may not be accepte
Page 49 and 50: Conference and Seminar Costs Fees f
Page 51 and 52: We have stated that there must be a
Page 53 and 54: IV. POLICY REGARDING CONFLICTS OF I
Page 55 and 56: public, even though, such relatives
Page 57 and 58: and other relatives who live in the
Page 59 and 60: protection, and the reimbursement o
Page 61 and 62: Legal / Compliance Consultation Not
Page 63 and 64: MERGER AND CONSOLIDATIONS ISSUES NO
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Page 67 and 68: A Review of ‘Red Flags’ and wha
Page 69 and 70: Business Depositors: Understanding
Page 71 and 72: WHAT POLICIES, PROCEDURES AND RISK
Page 73 and 74: 16. Conflict of Interest/Code of Et
Page 75 and 76: Union Assessment 33. Identity Theft
Page 77 and 78: Procedures 60. Training Policy See
Page 79 and 80: Also - consider the other changes c
Page 81 and 82: policies, procedures and documents
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Underwriting Advertising In July 20
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135-2009 Community Notice // OE/CE
Page 87 and 88:
Credit Union’s lien right are not
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