BSA/AML Examination Manual - ffiec

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examination procedures, 186-187 overview, 184-185 red flags, F-7 request letter items, H-9 Preliminary Evaluation of the Bank’s BSA/AML Compliance Program, 39, 160 Private Banking. See also Private Banking Due Diligence Program (Non-U.S. Persons); Confidentiality 4, 13, 20, 23, 25, 33, 37, 43, 141, 235, 255, 261, 264, 267-268, 292, 294, 295, 297, J-2 beneficial owners, 120-121, 123, 125-127, 247-250, 267 board of directors and senior management oversight, 251 common structure, N-1 customer risk assessment, 121-122, 249 due diligence, 121, 249-250, 271 examination procedures, 252-253 laws and regulations, A-4 overview, 247-251 private banker deemed a “financial institution,” D-1 red flags, F-7, F-8 request letter items, H-14, H-15 risk of shell companies, 247-249 typical products and services offered, 247-248 vulnerabilities to money laundering, 248 Wolfsberg principles, 171, C-4 Private Banking Due Diligence Program (Non U.S. Persons). See also Private Banking applicability dates, 124 ascertaining source of funds, 122 defined — private banking account, 120-121 defined — senior foreign political figure, 264-265 due diligence program, 121 enhanced scrutiny for senior foreign political figures, 122-124 examination procedures, 125-127 identifying senior foreign political figures, 123-124 monitoring account activity, 122 overview, 120-124 risk assessment of accounts for non-U.S. persons, 121-122, 249, 264 special procedures when due diligence cannot be performed, 124 Private Investment Companies (PICs). See Foreign Business Entities; Confidentiality Privately Owned ATMs. See Automated Teller Machines (ATMs) Products and Services. See Risk Assessment Professional Service Providers, 21 beneficial owners, 283 examination procedures, 285-286 overview, 283-284 request letter items, H-18 Prohibited Transactions. See Office of Foreign Assets Control (OFAC) Index FFIEC BSA/AML Examination Manual Index-17 8/24/2007
Purchase and Sale of Monetary Instruments. See Monetary Instruments Recordkeeping R Index Receiving Depository Financial Institution (RDFI). See Automated Clearing House (ACH) Transactions Record Retention Requirements, P-1 to P-6 Currency Transaction Reports (CTRs), 77, P-5 Customer Identification Program (CIP), 54, P-5, P-6 Office of Foreign Assets Control (OFAC), 146 request letter items, H-6 Suspicious Activity Reports (SARs), 71, P-5 Recordkeeping. See Correspondent Accounts (Foreign), Credit Cards, Customer Identification Program (CIP), Foreign Correspondent Account Recordkeeping and Due Diligence; Funds Transfers Recordkeeping, Monetary Instruments Recordkeeping; Record Retention Requirements Red Flags, F-1 to F-10 potentially suspicious activity that may indicate money laundering activity inconsistent with the customer’s business, F-3, F-4 automated clearing house (ACH) transactions, F-3 changes in bank-to-bank transactions, F-4 cross-border financial institution transactions, F-4, F-5 customers who provide insufficient or suspicious information, F-1, F-2 efforts to avoid reporting or recordkeeping requirements, F-2 electronic banking, 188 embassy and foreign consulate accounts, F-7 employees, F-7 funds transfers, F-2, F-3 insurance, F-6 lending activity, F-4 other suspicious customer activity, F-7, F-8, F-9 politically exposed persons (PEPs), 266 privately owned automated teller machines (ATMs), F-6 shell company activity, F-6, F-7 trade finance, F-5 potentially suspicious activity that may indicate terrorist financing activity inconsistent with the customer’s business, F-9 funds transfers, F-10 other transactions that appear unusual or suspicious, F-10 Regulatory Alerts (RA), B-1, Q-4 Reliance. See Customer Identification Program (CIP) Remote Deposit Capture (RDC). See also Contractual Agreements, Contracts 189-190, 191, Q-4 Report of Examination (ROE), 28, 40, A-1, Q-5 include OFAC findings, 148 preparing comments for, 42-44 FFIEC BSA/AML Examination Manual Index-18 8/24/2007
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Bank Secrecy Act / Anti-Money Laund
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Table of Contents EXPANDED EXAMINAT
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INTRODUCTION Introduction This Fede
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Background Introduction In 1970, Co
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Introduction institutions, such as
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Introduction proliferation of weapo
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Introduction Although the motivatio
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Scoping and Planning — Overview C
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Scoping and Planning — Overview T
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Scoping and Planning — Examinatio
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Scoping and Planning — Examinatio
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BSA/AML Risk Assessment — Overvie
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Analysis of Specific Risk Categorie
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BSA/AML Risk Assessment — Examina
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BSA/AML Compliance Program — Over
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BSA/AML Compliance Program — Exam
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Developing Conclusions and Finalizi
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Developing Conclusions and Finalizi
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Customer Identification Program —
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Customer Information Required Custo
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Transaction Testing Customer Identi
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Customer Due Diligence — Overview
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Customer Due Diligence — Examinat
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Suspicious Activity Reporting — O
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Law Enforcement Inquiries and Reque
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Timing of a SAR Filing Suspicious A
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Suspicious Activity Reporting — E
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Suspicious Activity Reporting — E
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Currency Transaction Reporting —
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Currency Transaction Reporting —
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Currency Transaction Reporting Exem
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• Operating a pawn brokerage. Cur
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Currency Transaction Reporting Exem
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Information Sharing — Overview In
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Information Sharing — Overview su
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Information Sharing — Overview es
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Copies of section 314(a) requests.
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Purchase and Sale of Monetary Instr
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Funds Transfers Recordkeeping — O
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Funds Transfers Recordkeeping — O
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Responsibilities of Beneficiary’s
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Funds Transfers Recordkeeping — E
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Foreign Correspondent Account Recor
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Private Banking Due Diligence Progr
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Special Measures — Overview minim
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Examination Procedures Special Meas
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Foreign Bank and Financial Accounts
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International Transportation of Cur
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Office of Foreign Assets Control
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Enterprise-Wide BSA/AML Compliance
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Corporate management. Enterprise-Wi
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Foreign Branches and Offices of U.S
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Examination Procedures Parallel Ban
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Correspondent Accounts (Domestic)
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Correspondent Accounts (Foreign)
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Correspondent Accounts (Foreign)
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U.S. Dollar Drafts — Overview U.S
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U.S. Dollar Drafts — Examination
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Payable Through Accounts — Overvi
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Payable Through Accounts — Examin
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Payable Through Accounts — Examin
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Risk Mitigation Pouch Activities
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Pouch Activities — Examination Pr
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Electronic Banking — Overview lin
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Examination Procedures Electronic B
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Funds Transfers — Overview and on
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Funds Transfers — Overview busine
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Examination Procedures Funds Transf
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Automated Clearing House Transactio
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Transaction Testing Automated Clear
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Electronic Cash — Overview Using
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Third-Party Payment Processors —
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Third-Party Payment Processors —
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Brokered Deposits — Overview Brok
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Examination Procedures Brokered Dep
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Privately Owned Automated Teller Ma
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• Expected account activity, incl
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Privately Owned ATMs — Examinatio
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Nondeposit Investment Products —
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Nondeposit Investment Products —
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− Holdings in excess of the custo
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Insurance — Overview its insuranc
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Examination Procedures Insurance In
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Concentration Accounts — Overview
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Concentration Accounts — Examinat
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Lending Activities — Overview bus
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Trade Finance Activities — Overvi
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Risk Mitigation Trade Finance Activ
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Trade Finance Activities — Overvi
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Private Banking — Overview Privat
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Customer Risk Assessment Private Ba
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Private Banking — Overview determ
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Offshore entities. Cash-intensive b
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Trust and Asset Management Services
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• The type of trust or agency acc
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Transaction Testing Trust and Asset
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Nonresident Aliens and Foreign Indi
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Nonresident Aliens and Foreign Indi
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Politically Exposed Persons — Ove
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Politically Exposed Persons — Ove
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Politically Exposed Persons — Exa
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Embassy and Foreign Consulate Accou
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Embassy and Foreign Consulate Accou
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Non-Bank Financial Institutions —
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Professional Service Providers —
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Professional Service Providers —
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Non-Governmental Organizations and
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Non-Governmental Organizations and
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Business Entities (Domestic and For
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Risk Factors Business Entities (Dom
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Cash-Intensive Businesses — Overv
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Appendix A: BSA Laws and Regulation
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Appendix B: BSA/AML Directives Appe
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Web Sites Appendix C: BSA/AML Refer
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Appendix C: BSA/AML References •
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Appendix D: Statutory Definition of
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Appendix E: International Organizat
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Appendix F: Money Laundering and Te
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Privately Owned Automated Teller Ma
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Funds Transfers Appendix F: Money L
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Appendix G: Structuring However, tw
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Appendix H: Request Letter Items (C
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Expanded Examination Procedures App
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Parallel Banking _ List any paralle
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Page 347 and 348: Appendix H: Request Letter Items (C
Page 349 and 350: Appendix H: Request Letter Items (C
Page 351 and 352: Appendix I: Risk Assessment Link to
Page 353 and 354: Appendix J: Quantity of Risk Matrix
Page 355 and 356: Appendix K: Customer Risk versus Du
Page 357 and 358: When did the suspicious activity ta
Page 359 and 360: Low No history of OFAC actions. No
Page 361 and 362: Appendix O: Examiner Tools for Tran
Page 363 and 364: Appendix O: Examiner Tools for Tran
Page 365 and 366: Signature Cards Appendix P: BSA Rec
Page 367 and 368: Name and address of the beneficiary
Page 369 and 370: Appendix P: BSA Record Retention Re
Page 371 and 372: Acronym or abbreviation Full name E
Page 373 and 374: Acronym or abbreviation Full name N
Page 375 and 376: Appendix R: Enforcement Guidance Ap
Page 377 and 378: Appendix R: Enforcement Guidance As
Page 379 and 380: Appendix R: Enforcement Guidance ex
Page 381 and 382: Appendix R: Enforcement Guidance FF
Page 383 and 384: Backfiling. See Currency Transactio
Page 385 and 386: overview, 165-167 request letter it
Page 387 and 388: money services businesses, 279 nond
Page 389 and 390: Export Administration Act of 1979,
Page 391 and 392: Index 314(a) record searches, 88 Cu
Page 393 and 394: Index for a BSA/AML compliance prog
Page 395 and 396: guidance on providing banking servi
Page 397: 247, 253, H-15 Offshore Financial C
Page 401 and 402: trade finance activities, H-14 trus
Page 403 and 404: enterprise-wide, 149-150, 152, 153
Page 405: U United Nations, 7, 137 Updating O
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