BSA
BSA IS THE ACRONYM
WHAT IS BANK SECRECY ACT
The purpose behind BSA/AML is to stop money laundering, terrorist financing and other illegal activities
CTR STAND FOR WHAT
WHAT IS CURRENCY TRANSACTION REPORT.
These reports are filed with FinCEN for tracing the flow of currency through the financial system helps identify the "unusual"
SAR STANDS FOR
WHAT IS SUSPICIOUS ACTIVITY REPORT
When the "unusual" is identified, investigated and deemed "suspicious"
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
AML stand for
What is Anti-Money Laundering
A set of procedures, laws and regulations designed to stop and practice of generating income through illegal actions.
The Credit Union must have a written, Board-approved BSA program that includes:
An appointed BSA Compliance Officer
internal policies, procedures, and controls
independent testing
on- going staff training
member due diligence, risk rating and monitoring
True or False
What is true
These are the 5 required Pillars of the BSA Program
THE PROCESS OF PLACING, LAYERING, AND INTEGRATION OF FUNDS.
WHAT IS MONEY LAUNDERING
Placement= dirty money into the FI
Layering= transfers, wires,
Integration= purchase of luxury assets, financial investments
CTR'S ARE REQUIRED FOR ANY CASH TRANSACTION IN EXCESS OF.
WHAT IS $10,000
Cash in or out in one business day that exceeds $10,000 on behalf of, or transacted by, the same person. Multiple transactions must be aggregated.
A SAR MUST BE FILED WHEN THERE IS INSIDER ABUSE INVOLVED, REGARDLESS OF THE AMOUNT. TRUE OR FALSE?
WHAT IS TRUE
Insider abuse= Zero tolerance
Suspect can be identified= transaction aggregation $5,000 or more
Potential Suspect= transaction aggregation $25,000 or more
Can file for lower amount- Safe Harbor
MONETARY INSTRUMENT REPORTS ARE REQUIRED ON SALES OF MONETARY INSTRUMENTS SOLD FOR CASH IN AMOUNTS FROM ______ TO $10,000
WHAT IS $3,000
Monetary instruments = cashier's check's, money orders. Must record when a purchased with cash between $3,000 and $10,000. This log is kept by compliance.
Under the Beneficial Ownership Rule the two prongs are?
what is the ownership prong and the control prong
Ownership prong = each individual who owns directly or indirectly 25% or more of the equity interest of the legal entity.
Control prong = a single individual with significant responsibility to control, manage, or direct a legal entity
BSA REQUIRES THAT ALL FINANCIAL INSTITUTIONS TO CREATE AND IMPLEMENT A PROGRAM TO IDENTIFY MEMBERS/ CUSTOMERS.
WHAT IS CUSTOMER IDENTIFICATION PROGRAM (CIP) OR (MIP).
Reasonable belief as to the member's true identity. We have notice to members in our lobbies and at the desk of anyone who is opening up accounts.
YOU CAN INFORM A MEMBER THAT A CTR IS GOING TO BE FILED? TRUE OR FALSE
WHAT IS TRUE
There is nothing wrong with sharing this information, but currently the Credit Union takes the approach not to share the CTR filing with members.
CAN YOU INFORM THE MEMBER THAT A SAR IS BEING FILED
WHAT IS NO
Very Confidential. You will not necessarily know if a SAR has been filed or not. Do not talk amongst co-workers, but talk to supervisor and Compliance.
THE FOUR REQUIREMENTS WHAT WE MUST OBTAIN FOR A NEW MEMBER FOR CIP (MIP)
WHAT IS THE DATE OF BIRTH, PHYSICAL ADDRESS, THEIR IDENTIFYING NUMBER (SSN,EIN,ITIN), AND THEIR LEGAL NAME
A business that:
is a currency dealer or exchanger
is a check casher
is an issuer, seller or redeemer of traveler's checks, money orders or store value cards
is a money transmitter
has activity greater than $1,000 per person per day
WHAT IS A MONEY SERVICE BUSINESS (MSB)
We DO NOT bank these businesses
OFAC STAND FOR WHAT?
WHAT IS THE OFFICE OF FOREIGN ASSETS CONTROL
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.
IS IT POSSIBLE TO BE EXEMPT FROM CTR'S? Yes or NO
WHAT IS YES
Phase I =Domestic Banks, Government entities, Listed Businesses
Phase II = Non-listed businesses- account for 2 months, frequent reportable transactions (5 in 12 month), Incorporated or organized under U.S. laws, and is not an ineligible business type
A SUSPECTED SUSPICIOUS ACTIVITY MUST BE REPORTED WITHIN _____ DAYS OF ITS OCCURRENCE
WHAT IS 30 CALENDAR DAYS
After first reported to Compliance, they have 30 calendar day to review and investigate prior to be submitted.
HOW DO YOU IDENTIFY A BUSINESS' BENEFICIAL OWNER?
WHAT IS DIRECTLY OR INDIRECTLY OWNING 25% OR MORE OF THE BUSINESS.
New to BSA in March of 2018 that we must obtain all beneficial owners on a business entity.
The Credit Union must have a program to continually check member records for update of information (name,address, photo ID, ect.)
WHAT IS MEMBER DUE DILIGENCE
This is done when you are updating member information on their account. It is also done back office by Kristen K when doing mini account audits.
ALL RECORDS RELATE TO MAINTAING BSA COMPLIANCE WILL BE RETAINED FOR A PERIOD OF NO LESS THAN ________ YEARS.
WHAT IS FIVE
All information collected that falls under BSA will as a retention of 5 years. All CIP (MIP) documents used to open an account is retained for 5 years after the date the account was closed.
THE CREDIT UNION HAS THIS MANY CALENDAR DAYS AFTER THE "BUSINESS" DAY OF THE TRANSACTION FOR TILE A CTR.
WHAT IS 15 calendar days
Filing must be within 15 calendar days of the transaction. Branches complete and scan to Kristen K, she then validates information to system reports prior to submission to FinCEN
IF A MEMBER COMES IN THE CREDIT UNION A FEW TIMES A WEEK AND MAKES A DEPOSIT OF JUST SHY OF $10,000 EVERY TIME AND WE ARE UNAWARE OF ANY APPARENT ECONOMIC, BUSINESS, OR LAWFUL PURPOSE, WHAT TYPE OF SUSPICIOUS ACTIVITY
WHAT IS KNOWN AS STRUCTURING
Activity just under the BSA/CTR requirement, trying to avoid reporting.
WHAT ARE ACCEPTABLE DOCUMENTS WHEN VERIFYING THE IDENTITY OF THE BUSINESS?
WHAT ARE ARTICLES OR INCORPORATION OR ORGANIZATION, STATE-ISSUED CERTIFICATION OF INC, CERTIFICATE OF ASSUMED NAME, BUSINESS LICENSE
THE CREDIT UNION IS REGISTERED ON WHAT TO BE ABLE TO SHARE INFORMATION WITH OTHER FINANCIAL INSTITUTIONS THAT ARE ALSO REGISTERED ON THIS LIST
WHAT IS THE FinCEN 314(b) list
This is something the Credit Union must renew annually. If other FI's on list as well we are able to share information regarding members and are under a safe harbor. Currently only Kristen K is registered agent.