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Can you summarize Assessing the BSA/AML Compliance Program > Assessing the BSA/AML Compliance Program (2020)?
Assessing the BSA/AML Compliance Program > Assessing the BSA/AML Compliance Program (2020)
Short Summary
This document outlines the requirements for assessing the Bank Secrecy Act/Anti-Money Laundering (BSA/AML) compliance program of banks. The objective is to determine whether the bank has designed, implemented, and maintains an adequate BSA/AML compliance program that complies with BSA regulatory requirements. The BSA/AML compliance program must be written, approved by the board of directors, and noted in the board minutes. It should be commensurate with the bank’s ML/TF and other illicit financial activity risk profile. The program must include a system of internal controls, independent testing for compliance, designation of a BSA compliance officer, and training for appropriate personnel. Additionally, it must incorporate a customer identification program (CIP) with risk-based procedures, ongoing customer due diligence (CDD), and compliance with beneficial ownership requirements for legal entity customers. The adequacy of the program is assessed through a review of written policies, procedures, and processes, as well as examination and testing procedures. Findings should be discussed with bank management and included in the report of examination (ROE) or supervisory correspondence. Examiners may adjust the examination plan based on new information identified during the review. The document provides references to relevant regulations and requirements issued by various regulatory bodies.
Whom does it apply to?
Banks
What does it govern?
BSA/AML compliance program
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
Not specified.
Jurisdiction
U.S. Federal Government