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Can you summarize Expanded Examination Procedures for Consolidated and Other Types of BSA/AML Compliance Program Structures > Foreign Branches and Offices of U.S. Banks?
Expanded Examination Procedures for Consolidated and Other Types of BSA/AML Compliance Program Structures > Foreign Branches and Offices of U.S. Banks
Short Summary
This document provides an overview of the assessment of U.S. banks’ systems to manage risks associated with their foreign branches and offices. It emphasizes the importance of effective monitoring and reporting systems. U.S. banks open foreign branches and offices to meet customer demands, expand their products or services, or facilitate growth. The document highlights that while specific BSA requirements are not applicable to foreign branches and offices, banks are expected to have policies, procedures, and processes in place to protect against money laundering and terrorist financing risks. The risk factors associated with foreign branches and offices may differ from those in the U.S., and examiners should understand the various AML requirements of the foreign jurisdiction. The document also discusses risk mitigation measures, scoping AML examinations, and the factors to consider when deciding whether examinations should occur in the host jurisdiction or the United States. It emphasizes the need for effective monitoring, internal controls, and information-sharing practices between branches and offices. The document concludes with examination procedures for assessing the adequacy of the U.S. bank’s systems related to foreign branches and offices.
Whom does it apply to?
U.S. banks with foreign branches and offices
What does it govern?
Foreign Branches and Offices of U.S. Banks
What are exemptions?
No specific exemptions are mentioned.
What are the Penalties?
No specific penalties are mentioned.
Jurisdiction
U.S. Federal Government