What is the BSA Manual?

What is the BSA Manual?

The Manual provides instructions to examiners for assessing the adequacy of a bank’s BSA/AML compliance program and its compliance with BSA regulatory requirements. The Manual itself does not establish requirements for banks; such requirements are found in statutes and regulations.

What is the difference between BSA and AML?

Congress passed the Bank Secrecy Act (BSA), also known as the Anti-Money Laundering (AML) law, in 1970 to combat money laundering in the United States. Financial institutions must keep detailed records and report suspicious activity that could indicate money laundering or other crimes. …

What is a BSA AML risk assessment?

The BSA/AML risk assessment should provide a comprehensive analysis of the bank’s ML/TF and other illicit financial activity risks. Documenting the BSA/AML risk assessment in writing is a sound practice to effectively communicate ML/TF and other illicit financial activity risks to appropriate bank personnel.

What are the 5 pillars of BSA AML program?

Currently, institutional AML programs are based on the “five pillars”: internal policies, procedures and controls; designation of an AML officer; employee training; independent testing; and customer due diligence (CDD).

Who does BSA AML apply to?

The BSA requires traditional banks, credit unions and thrifts, as well as non-bank financial institutions, securities dealers and money services businesses, to perform anti-money laundering checks and to keep specific records of events that could signal the occurrence of money laundering.

Who is subject to AML?

The MLCA’s money laundering provisions apply to all US persons and foreign persons when (1) the conduct occurs in whole or in part in the US; (2) the transaction involves property in which the US has an interest pursuant to a forfeiture order; or (3) when the foreign person is a financial institution with a US bank …

What is the purpose of BSA AML?

BSA is the primary U.S. anti-money laundering (AML) law and has been amended to include certain provisions of Title III of the USA PATRIOT Act to detect, deter and disrupt terrorist financing networks.

What is channel risk in AML?

Channel risk is determined by whether the delivery of a product or service involves face to face contact with the customer, as face to face contact limits the ability for customer anonymity and facilitates establishing whether the customer is who they are claiming to be.

What are the 3 main factors to consider in determining AML risk?

Inherent BSA/AML risk falls into three main categories: (1) products and services, (2) customers and entities, and (3) geographic location.

Which regulations require AML?

3 Most Important AML Compliance Laws You Need in 2020

  • The Financial Action Task Force (FATF) The Financial Action Task Force (FATF) was founded by the G-7 summit in 1989 as financial crimes pose serious threats.
  • The European Union – Fifth Anti-Money Laundering Directives (5AMLD)
  • The Bank Secrecy Act (BSA)

What is BSA and AML compliance?

BSA AML Compliance. In 1970, Congress passed the Bank Secrecy Act (BSA)-also known as the Anti-Money Laundering (AML) law. Since then, financial institutions like yours have been required to cooperate with government agencies to detect and prevent money laundering.

What is BSA AML?

The BSA is sometimes referred to as an anti-money laundering law (AML) or jointly as BSA/AML. Several anti-money laundering acts, including provisions in title III of the USA PATRIOT Act, have been enacted up to the present to amend the BSA. The legislation is enforced by the Financial Crimes Enforcement Network (FinCEN).

What is an AML Compliance Officer?

An AML Compliance Officer’s primary professional focus falls on the internal systems and controls that their institution puts in place to help detect, monitor and report money laundering activities to the authorities. Their job is to ensure that their institution is not exposed to criminal risk,…

What is Bank Protection Act?

Bank Protection Act of 1968. Bank Protection Act of 1968 Definition. A federal law that authorized the Federal Home Loan Bank Board and other federal regulators of depository institutions to set minimum standards to be met by financial institutions in installing security devices to discourage robberies, burglaries and larcenies. Submit a Definition.