BSA
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
CTR means 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
SAR stands for this.
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 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.
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.
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
CTRs ARE REQUIRED FOR ANY CASH TRANSACTION IN EXCESS OF THIS AMOUNT.
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
*Other scenarios:
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 THIS AMOUNT TO THIS AMOUNT.
WHAT IS $3,000 TO $10,000
Monetary instruments = cashier's check's, money orders. Must record when a purchased with cash between $3,000 and $10,000.
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.
J.T Blau is our current designated BSA Compliance Officer.
THE BSA REQUIREMENT FOR 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. CTRs are not confidential and we may find that it is necessary to share this information with the members in explaining the reasoning for collecting certain information from them.
The investigation of a member for the purposes of SAR filing and/or the existence of a SAR is strictly considered to be this.
WHAT IS COFIDENTIAL?
SAR filing is very much Confidential. It is a violation of the BSA ACT to disclose the filing of a SAR to anyone that doesn't need to know.
These are the four pieces of information that we MUST obtain for a new membership to remain in compliance with CIP/MIP
WHAT IS THE DATE OF BIRTH, PHYSICAL ADDRESS, THEIR IDENTIFYING NUMBER (SSN,EIN,ITIN), AND THEIR LEGAL NAME
For this pillar, Call Federal uses an outside vendor to provide an annual assessment of our BSA program- specifically looking for areas of vulnerability.
What is the Fourth Pillar?
Independent testing of BSA/AML Compliance
OFAC STANDS FOR THIS.
WHAT IS THE OFFICE OF FOREIGN ASSETS CONTROL
Houses 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.
IT IS POSSIBLE TO BE ____ FROM CTR'S, MEANING THEY MAY NOT HAVE TO BE FILED IN CERTAIN INSTANCES.
WHAT IS EXEMPT
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
ONCE IT HAS BEEN DETRMINED THAT SUSPECTED SUSPICIOUS ACTIVITY SHOULD BE REPORTED, THE CREDIT UNION HAS _____ DAYS TO FILE A SAR
WHAT IS 30 CALENDAR DAYS
SAR filings are determined by a committee consisting of at least three people. Once it is determined that a SAR should be filed, we have 30 days to submit it.
Violations of BSA can cause civil money penalties and possible criminal actions against these people and/or entities.
Who are Call Federal Credit Union and it's employees and directors.
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?
We currently use a New Member questionnaire to gather information to develop a risk profile for all new members.
We monitor established accounts for red flags and we should always be sure to update members' addresses, phone numbers and ID information as often as is necessary.
ALL RECORDS RELATED 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.
A CTR MUST BE FILED WITHIN THIS TIME FRAME.
WHAT IS 15 calendar days
Filing must be within 15 calendar days of the transaction. Branches complete the CTR in Portico or manually for shared branch transactions. It then goes to compliance to be filed electronically.
This form should be filled in and sent to the compliance department when ANY suspicious activity is suspected.
WHAT IS A SUSPICIOUS ACTIVITY INVESTIGATION REPORT?
*It is located in Call Central under Forms and Procedures> Forms>Retail/Frontline>Suspicious Activity Investigation Report revised.pdf
***These are always looked at by the BSA Officer and fully investigated.
Avoiding record keeping and reporting requirements, cash transactions below the CTR reporting requirements, refusal or reluctance to provide original identifying documents or other required information are all examples of this.
What are Red Flags/suspicious activity?
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.
This policy is based on the credit union's overall risk profile determined by factors such as the location of credit union branches, proximity of members' addresses to HIDTAs or HIFCAs and the types of products and services the credit union offers.