Ask Reggi Your Question Now
Can you summarize BSA/AML Risk Assessment > BSA/AML Risk Assessment (2020)?
BSA/AML Risk Assessment > BSA/AML Risk Assessment (2020)
Short Summary
This document, the BSA/AML Risk Assessment, is part of the Federal Financial Institutions Examination Council (FFIEC) BSA/AML Examination Manual. It provides standards for examiners to assess the adequacy of a bank’s BSA/AML risk assessment process. The objective is to review the bank’s risk assessment process and determine if it has adequately identified money laundering, terrorist financing, and other illicit financial activity risks within its banking operations. The risk assessment process helps banks identify and mitigate risks, develop appropriate internal controls, and comply with BSA regulatory requirements. The document outlines the steps involved in developing a risk assessment, including identifying specific risk categories and analyzing the associated risks. It emphasizes the importance of documenting the risk assessment and communicating it to relevant bank personnel. The document also discusses the need to update the risk assessment to reflect changes in the bank’s products, services, customers, and geographic locations. Examiners are instructed to assess the adequacy of the bank’s risk assessment and develop their own assessment if necessary. Overall, the document provides guidance for banks to develop a risk-based BSA/AML compliance program.
Whom does it apply to?
Banks
What does it govern?
BSA/AML risk assessment process
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
U.S. Federal Government