Bank Secrecy Act & OFAC Flashcards
What are the 4 pillars of a credit union BSA compliance program?
- Internal Controls
- Independent Testing
- Individual responsible for compliance
- Proper training
What should a credit union’s risk assessment look at?
- Products
- Services
- Members
- Geographic Locations
What minimum pieces of identifying information must be collected for CIP purposes?
- Name
- Date of Birth
- Address
- Identification Number
What is documentary verification?
Using documents to verify identity - unexpired government issued photo ID, articles of incorporation, business license, partnership agreement, trust instrument.
What is nondocmentary verification?
Using something other than documentation to verify identity - contacting the customer, comparing information with information obtained from consumer reporting agency, public database, other source, checking references with other financial institutions, or obtaining a financial statement
Reasonable Belief as to the identity of a customer means?
Customer Identification Program (CIP)
The Patriot Act requires each credit union to implement a written CIP that includes certain minimum requirements to form a reasonable belief that it knows the true identity of each customer
What is the dollar threshold and timing requirement for CTR?
Currency Transaction Report - must file a CTR for each transaction in currency of more than $10,000.
CTR must be filed with FinCEN within 15 days after the date of the transaction. Must retain copies of CTR filings for 5 years from the date of report.
What is the dollar threshold for SAR?
Suspicious Activity Report - must be filed:
- criminal violations involving insider abuse in any amount
- criminal violations aggregating $5,000 or more when a suspect can be identified
- criminal violations aggregating $25,000 or more regardless of whether or not the credit union can identify the suspect
- transactions conducted or attempted aggregating $5,000 if the credit union knows, suspects or has reason to suspect that the transaction involves illegal activity, money laundering, etc
What is the timing requirement for SAR?
SAR must be filed no later than 30 calendar days from the date of the initial detection of facts that may constitute a basis for filing a SAR or if no suspect can be identified 60 days
What is the general recordkeeping requirement for BSA related documents?
5 years
What information must you get for a sale of monetary instruments between $3,000 - $10,000 for member?
- Name of purchaser
- Date of purchase
- Types of instruments purchased
- Serial numbers of each instrument
- Dollar amounts of each instrument
- Specific identifying information, if applicable
What information must you get for a sale of monetary instruments between $3,000 - $10,000 for non member?
- Name and address of purchaser
- SS# or alien ID#
- Date of birth
- Date of purchase
- Types of instruments purchased
- Serial number of each instrument
- Dollar amounts of each instrument
- Specific identifying information, if applicable
What is 314(a) information sharing?
Through a 314(a) request, FinCEN solicits, on its behalf, certain information from financial institutions, including credit unions investigating terrorist activity or money laundering
What is 314(b) information sharing?
Encourages financial institutions to share information in order to identify and report activities that may involve terrorist activity or money laundering
