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Can you summarize Scoping and Planning > Scoping and Planning Introduction (2020)?
Scoping and Planning > Scoping and Planning Introduction (2020)
Short Summary
This document, part of the Federal Financial Institutions Examination Council (FFIEC) BSA/AML Examination Manual, provides guidance to examiners on scoping and planning for the examination of a bank’s money laundering, terrorist financing (ML/TF), and other illicit financial activity risk profile. The objective is to develop a risk-focused examination scope and document the Bank Secrecy Act/anti-money laundering (BSA/AML) examination plan. Examiners assess the adequacy of the bank’s BSA/AML compliance program and its compliance with BSA regulatory requirements. The scoping and planning process helps examiners understand the bank’s risk profile and focus their reviews on areas of greatest ML/TF and other illicit financial activity risks. The process includes determining examination staffing needs, identifying examination and testing procedures, and tailoring the examination scope to the bank’s risk profile, size, complexity, and organizational structure. The document also mentions the consideration of Office of Foreign Assets Control (OFAC) compliance in conjunction with BSA/AML examinations, but it is not required in every examination cycle. The primary role of the federal banking agencies relative to OFAC is to evaluate the sufficiency of the bank’s implementation of policies, procedures, and processes for complying with OFAC-administered laws and regulations.
Whom does it apply to?
Examiners assessing the adequacy of a bank's Bank Secrecy Act/anti-money laundering (BSA/AML) compliance program.
What does it govern?
Develop an understanding of the banks money laundering, terrorist financing (ML/TF), and other illicit financial activity risk profile. Based on the banks risk profile, develop a risk-focused examination scope, and document the Bank Secrecy Act/anti-money laundering (BSA/AML) examination plan.
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
U.S. Federal Government