Acronyms
BSA is the acronym for this.
What is Bank Secrecy Act?
*The purpose behind BSA/AML is to stop money laundering, terrorist financing and other illegal activities
The member has this much time to file a report with OFAC if a member comes up as a match.
What is 10 days?
This was enacted in the year of 1970.
What is the Bank Secrecy Act?
CDD stands for this.
What is Customer Due Diligence?
Risk-based procedures aimed at identifying and verifying customers, understanding the nature of customer relationships, and monitoring for suspicious activity.
Every employee and volunteer of a financial institution is required to do this at least annually.
What is BSA Training?
(Pillar three) Training for appropriate personnel including the Board of Directors, The Supervisory Committee, Senior Management, and all other staff.
CTR is the acronym for this.
WHAT IS CURRENCY TRANSACTION REPORT?
*These reports are filed with FinCEN for tracing the flow of currency through the financial system. This helps identify the "unusual" or out of pattern transactions that could be related to illicit activity
**DAILY DOUBLE** DOEP is the acronym for this.
The CU is required to maintain documentation on monetary instruments over $3,000 for this period of time.
What is at least 5 years?
This act was enacted in 2020.
What is The Anti-Money Laundering Act?
CIP is the acronym for this.
What is Customer Identification Program?
Customer Identification Program (CIP) is a mandatory, board-approved policy under the USA PATRIOT Act requiring financial institutions to verify the identity of individuals opening new accounts.
This Pillar requires the credit union to have someone with adequate experience and knowledge to manage the BSA program. This person is typically the contact for auditors and examiners.
What is the Second Pillar of BSA?
Designation of a BSA Compliance Officer.
SAR stands for this.
WHAT IS SUSPICIOUS ACTIVITY REPORT?
*Examples include: Terrorist financing, Tax evasion, Elder abuse, Identity theft, Fraud, Account takeovers, Human trafficking, Smuggling, Funnel account activity, Structuring to avoid reporting.
We are not investigating or accusing of a crime, just notifying authorities of account activity and explaining why that activity is unusual or suspicious
Financial institutions are required to search their records for potential matches for FinCEN 314(a) this often.
What is every 2 weeks?
The USA Patriot Act was in acted that year in response to 9/11.
What is 2001?
MIP is the acronym for this.
This is essentially the same as a CIP, but banks generally have customers, whereas Credit Unions have members. Both are mandated by the USA Patriot Act.
This pillar requires independent, regular testing of the CU's BSA/AML program to ensure its effectiveness.
What is the Fourth Pillar?
Independent testing of BSA/AML Compliance
OFAC STANDS FOR THIS.
WHAT IS THE OFFICE OF FOREIGN ASSETS CONTROL?
*OFAC houses a list of countries, regions and individuals with which we are not allowed to do business. Apply to all U.S. persons Facilitating a transaction for a person or entity on the OFAC list will be in violation of OFAC laws. Potential matches must be cleared BEFORE the transaction is done.
Financial institutions have this amount of days from the posting date to report a positive match on the FinCEN 314(a) search.
What is 14 days from the posting date?
This was the year the Customer Due Diligence Final Rule was put in place.
What is 2016?
FinCEN stands for this.
What is Financial Crimes Enforcement Network?
FinCEN is a bureau within the United States Department of the Treasury that collects and analyzes information about financial transactions to combat domestic and international money laundering, terrorist financing, and other financial crimes.
**DAILY DOUBLE** True or False: If a member appears on the FinCEN list, you should notify them immediately.
According to the fifth pillar of BSA, the credit union must have a risk based procedures for conducting this.
What is Customer/Member Due Diligence (CDD)?
AML stands for this.
What is Anti-Money Laundering?
*A set of procedures, laws and regulations designed to stop and practice of generating income through illegal actions.
A CU has this many calendar days to file a CTR after a reportable transaction.
What is within 15 calendar days?
**DAILY DOUBLE** This BSA related deadline may be extended to 60 days due to an exception.
This network was created in the year of 1990.
When was the creation of FinCEN?
USA PATRIOT Act is the acronym for this.
What is the acronym for Uniting (and) Strengthening America (by) Providing Appropriate Tools Required (to) Intercept (and) Obstruct Terrorism?
**BONUS - Double points to the Team that gets this!!
This pillar ensures that the credit union has a written, risk-based policy that is reviewed and approved by the board of directors annually. It also defines the roles of each part of the credit union as it pertains to BSA and outlines procedures to keep the credit union in compliance.
What is the First Pillar of BSA?
Internal controls that ensure ongoing compliance.