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 IS THE ACRONYM
WHAT IS CURRENCY TRANSACTION REPORT.
These reports, filed with FinCEN, help trace the flow of currency through the financial system and help identify the "unusual"
SAR IS THE ACRONYM
WHAT IS SUSPICIOUS ACTIVITY REPORT
SARs are filed for unusual or suspicious activity, including but not limited to, terrorist financing, tax evasion, fraud, and structuring.
We are not investigating or accusing of a crime, just notifying authorities of account activity and explaining why that activity is unusual or suspicious.
CIP IS THE ACRONYM
WHAT IS CUSTOMER IDENTIFICATION PROGRAM (CIP).
BSA requires the bank verify the identity of a new customer, maintain records of the identifying information and determine whether the person or entity appears on any known suspected terrorists list.
Applies when opening a new account or adding a new person to an existing account for all departments of the bank.
UDAAP IS THE ACRONYM
WHAT IS UNFAIR, DECEPTIVE, ABUSIVE ACTS or PRACTICES
UDAAP are misleading or harmful behaviors by those who offer financial products or services to consumers.
CRIMINAL PRACTICE OF PROCESSING ILLEGALLY OBTAINED FUNDS SO THEY APPEAR TO BE PROCEEDS FROM LEGAL ACTIVITIES.
WHAT IS MONEY LAUNDERING
Placement= dirty money into the FI
Layering= moving money around, sometimes by transfers and wires
Integration= additional transactions until "dirty money" appears clean.
CTR'S 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
Suspect can be identified= transaction aggregation $5,000 or more
Potential Suspect= transaction aggregation $25,000 or more
***DAILY DOUBLE***
LEGAL NAME, DATE OF BIRTH, PHYSICAL ADDRESS, AND U.S. TAXPAYER IDENTIFICATION NUMBER (SSN for individual or EIN for business or trust)
WHAT IS REQUIRED INFORMATION WHEN OPENING A NEW ACCOUNT.
This is also needed when adding a new person to an account.
UDAAP PROVISIONS FOR WHAT'S DEFINED AS “UNFAIR,” “DECEPTIVE” and "ABUSIVE” DO NOT OVERLAP.
TRUE OR FALSE
WHAT IS FALSE
The Bank must have a written, Board-approved BSA program that includes:
1) BSA OFFICER 2) SYSTEM OF INTERNAL CONTROLS 3) INDEPENDENT TESTING 4) STAFF TRAINING 5) CUSTOMER DUE DILIGENCE
TRUE OR FALSE
WHAT IS TRUE
These are the 5 required Pillars of the BSA Program
IT IS A CRIMINAL OFFENSE FOR BANK PERSONNEL TO HELP CUSTOMERS AVOID CTR FILING BY HELPING THE CUSTOMER STRUCTURE THEIR TRANSACTION(S). TRUE OR FALSE
WHAT IS TRUE
Both civil and criminal penalties may be imposed for BSA non-compliance or violations.
CAN YOU INFORM THE CUSTOMER THAT A SAR IS BEING FILED?
YES OR NO
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 BSA Officer.
FOR ACCOUNTS OPENED BY ENITIES, WE MUST IDENTIFY INDIVIDUALS WHO OWN _____% OR MORE EQUITY INTEREST OF THE LEGAL ENTITY.
WHAT IS 25%
This is referred to as the Ownership prong.
We must also identify the Control prong = a single individual with significant responsibility to control, manage, or direct a legal entity.
UDAAP PROHIBITIONS APPLY TO ALL PRODUCTS AND SERVICES YOU OFFER, DIRECTLY OR THROUGH ______-PARTY CONTRACTORS.
WHAT IS THIRD
OUR BSA OFFICER AND ASSISTANT BSA OFFICER
WHAT IS LIL KONERMANN AND KATIE RUFF
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- maintained account for at least 2 months, frequently engages in currency transactions in excess of $10,000(5 in 12 month), Incorporated or organized under U.S. laws, and gross revenue per year does not exceed amounts defined by FinCEN
SARs ARE COMMONLY USED TO REPORT STRUCTURING, WHICH MEANS PURPOSELY ARRANGING TRANSACTIONS TO EVADE THE REPORTING REQUIRMENTS OF THE BANK SECRECY ACT.
TRUE OR FALSE
WHAT IS TRUE
Two common types of structuring:
Making many currency deposits just under the $10,000 cutoff for CTRs.
Using currency for numerous purchases of monetary instruments UNDER the CTR reporting threshold.
OFAC STAND FOR WHAT?
WHAT IS THE OFFICE OF FOREIGN ASSETS CONTROL
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.
'UDAAP’ MAY ALSO VIOLATE OTHER FEDERAL OR STATE STATUES INCLUDING THE FAIR DEBT COLLECTION PRACTICES ACT, THE TRUTH IN ___________ AND TRUTH IN ____________ ACTS.
WHAT IS LENDING / SAVING
May also violate Equal Credit Opportunity and Fair Housing Acts, Fair Credit Reporting Act, Fair and Accurate Credit Transactions Act and various privacy laws.
***DAILY DOUBLE****
THE BANK MUST MAINTAIN A RECORD FOR EACH CASHIER'S CHECK IT SELLS OR ISSUES FOR THIS AMOUNT OR MORE IN CASH.
WHAT IS $3,000
Monetary Instruments purchased with cash in amounts between $3,000 and $10,000, inclusive, will be logged on the Monetary Instrument Log and retained for five (5) years.
THE BANK HAS 15 CALENDAR DAYS AFTER THE "BUSINESS" DAY OF THE TRANSACTION TO FILE THE CTR
TRUE OR FALSE
WHAT IS TRUE
Filing must be within 15 calendar days of the transaction. Branches complete the cash log then the BSA Officer validates the information prior to submission to FinCEN
SARs ARE REPORTED MONTHLY TO THE BOARD OF DIRECTORS
TRUE OR FALSE
WHAT IS TRUE
The report will contain a brief description of the activity, but not include names or account numbers.
WE ARE PROHIBITED FROM OPENING AN ACCOUNT FOR ANY CUSTOMER WHO IS ENGAGED IN A MARIJUANA-RELATED BUSINESS.
TRUE OR FALSE
WHAT IS TRUE.
At the time of account opening or loan application, through our Customer Due Diligence questionnaire, if it appears that a prospective customer engages, directly or indirectly, in an MRB, the account will not be opened or the loan will be denied.
IT'S IMPORTANT FOR A FINANCIAL INSTITUTION TO HAVE IN PLACE AN EFFECTIVE SYSTEM FOR TRACKING AND RESOLVING CUSTOMER ______________.
WHAT IS COMPLAINTS