Topic: Bank Secrecy Act & Anti-Money Laundering (BSA/AML)
-
Are we required to run an OFAC check on every person we hire? For example, if we hire a landscaper or a roofer, do we need to run an OFAC check on those individuals?
—
by
We are not aware of any rule or law that would require you to perform an OFAC check on bank employees or independent contractors hired for projects such as landscaping or roof repair. We should note that since some of the OFAC regulations contain very broad definitions of what are considered to be blockable assets…
-
Our Board asked us to put some sort of brochure or one page document together on BSA and Compliance related matters for the customer to pick up while at the branch. Is this permissible?
—
by
For a brochure providing BSA/AML information to customers, you may want to use FinCEN’s CTR Reference Guide, which explains the currency transaction reporting (CTR) requirements. A FinCEN notice suggests distributing this pamphlet to customers, “such as when a customer opens an account and expects to handle large amounts of currency or when a customer has…
-
Can we bank a customer that is operating like an MSB (providing check-cashing services) that does not have an MSB license? Why would a larger bank refuse to bank such a customer, and tell them to try a smaller bank for obtaining banking services?
—
by
The question of whether you should bank a company that is providing check cashing services is a business decision based on the risks involved and your institution’s ability to manage those risks. The Bank Secrecy Act requirements for money services businesses (MSBs) and your anti-money laundering responsibilities do not depend on the size of your…
-
Is there a recent Illinois law that permits financial institutions to lend to video gaming/video poker businesses?
—
by
The Illinois Video Gaming Act, 230 ILCS 40, enacted in 2009, permits video gaming terminals to be operated by licensed entities in Illinois. This law does not address financial institution lending to such entities, and we are not aware of any state or federal law that would prohibit a bank from making such loans pursuant…
-
Can we set up a joint checking account owned by two businesses? Should we get Employer Identification Numbers (EIN) from both businesses?
—
by
We are not aware of any laws or regulations that would prevent you from opening a joint checking account owned by two businesses. The Illinois Joint Tenancy Act provides that two or more persons may enter into a joint deposit account. 765 ILCS 1005/2(a). The Illinois Statute on Statutes defines the term “person” to include…