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Can you summarize Scoping and Planning > Risk - Focused BSA/AML Supervision (2020)?
Scoping and Planning > Risk - Focused BSA/AML Supervision (2020)
Short Summary
This document, titled ‘Risk-Focused BSA/AML Supervision’, provides guidance on conducting BSA/AML examinations for banks and financial institutions. The objective is to assess the adequacy of the bank’s BSA/AML compliance program and its compliance with BSA regulatory requirements. The document emphasizes a risk-focused approach, tailoring examination plans to each bank’s unique risk profile. Examiners should review the bank’s BSA/AML risk assessment, independent testing or audits, previous examination findings, management’s responses, offsite and ongoing monitoring, and BSA reporting available from FinCEN. The document also highlights the importance of independent testing and provides guidance on leveraging findings from the bank’s independent testing. Examiners should perform risk-focused testing to assess the bank’s compliance program, including transaction testing, analytical reviews, and evaluating controls and IT systems. The document emphasizes the need for documentation and rationale for testing decisions. Overall, the document aims to ensure effective BSA/AML supervision and compliance in the banking industry.
Whom does it apply to?
Banks and financial institutions subject to BSA/AML regulations
What does it govern?
BSA/AML examination activities necessary to assess the adequacy of the banks BSA/AML compliance program and the banks compliance with BSA regulatory requirements
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
Not specified in the document.
Jurisdiction
U.S. Federal Government