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Can you summarize Risks Associated with Money Laundering and Terrorist Financing > Funds Transfers (2014)?
Risks Associated with Money Laundering and Terrorist Financing > Funds Transfers (2014)
Short Summary
This document, part of the Federal Financial Institutions Examination Council (FFIEC) BSA/AML Examination Manual, focuses on assessing the adequacy of a bank’s systems to manage the risks associated with funds transfers. It aims to evaluate the bank’s ability to implement effective monitoring and reporting systems. The document provides an overview of funds transfers, including wholesale payment systems, retail transfer systems, and international transactions. It discusses the risks and risk factors associated with funds transfers, such as the volume and dollar value of transactions, geographic locations, and customer relationships. The document also highlights the importance of transparency in cover payments and the risks posed by informal value transfer systems. Risk mitigation measures, including customer due diligence, suspicious activity monitoring, and compliance with regulatory requirements, are emphasized. The document provides examination procedures for assessing a bank’s funds transfer activities and transaction testing. Overall, it aims to ensure that banks have robust policies, procedures, and processes in place to manage the risks associated with funds transfers.
Whom does it apply to?
Banks and financial institutions involved in funds transfers
What does it govern?
Assess the adequacy of the banks systems to manage the risks associated with funds transfers, and managements ability to implement effective monitoring and reporting systems
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
U.S. Federal Government