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Can you summarize Assessing the BSA/AML Compliance Program > BSA/AML Internal Controls (2020)?
Assessing the BSA/AML Compliance Program > BSA/AML Internal Controls (2020)
Short Summary
This document focuses on assessing the internal controls of banks and financial institutions to ensure ongoing compliance with the Bank Secrecy Act (BSA) regulatory requirements. The board of directors, through senior management, is responsible for establishing and maintaining internal controls that mitigate and manage money laundering, terrorist financing, and other illicit financial activity risks. The internal controls should be commensurate with the size, complexity, and organizational structure of the bank. The document outlines various factors that should be considered in assessing the adequacy of internal controls, such as incorporating the bank’s risk assessment, providing program continuity, facilitating oversight of information technology, incorporating dual controls and segregation of duties, and establishing specific compliance responsibilities. Examiners are tasked with determining whether the bank’s internal controls effectively mitigate risks and comply with BSA regulatory requirements. The document also references specific regulatory requirements and risk areas that should be considered. Overall, the document aims to ensure that banks have robust internal controls in place to prevent illicit financial activities and maintain compliance with BSA regulations.
Whom does it apply to?
Banks and financial institutions subject to BSA regulatory requirements.
What does it govern?
Assess the banks system of internal controls to assure ongoing compliance with BSA regulatory requirements.
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
Penalties may vary depending on the specific regulatory requirements and the severity of non-compliance.
Jurisdiction
U.S. Federal Government