Topic: Bank Secrecy Act & Anti-Money Laundering (BSA/AML)
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Do you have any resources for us on filing SARs?
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The rules and regulations that govern suspicious activity reports (SARs) can be found in the Code of Federal Regulations, 31 CFR 1020 (rules for banks). Many important rules are in Section 1020.320. The Financial Crimes Enforcement Network (FinCEN) has several publications related to SARs: Trends, Tips & Issues and their annual SAR Activity Review —…
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If a bank officer discloses to the bank attorney that the bank officer plans to file a SAR, is that is considered an “unauthorized disclosure”?
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After discussing with FinCEN’s legal department, we do not believe that the disclosure of a suspicious activity report (SAR) to the bank’s legal counsel would be an unauthorized disclosure. As an agent of the bank, the attorney can review the SAR without violating the SAR confidentiality rule. See 31 CFR 1020.320. In fact, FinCEN has…
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What documentation should we require when a business incorporated in a foreign country (Turks and Caicos Islands) opens an account at the bank?
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The FFIEC’s BSA/AML Examination Manual includes a concise treatment of the risk factors and possible risk mitigation steps related to business entities. Business Entities (Domestic and Foreign)—Overview. For any foreign businesses, you will have to conduct individual risk assessments before opening the business account. The assessment should review “the domestic or international jurisdiction where the…
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What procedures should we follow in opening a deposit account for a foreign business (outside of the country)?
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The FFIEC’s BSA/AML Examination Manual includes a concise treatment of the risk factors and possible risk mitigation steps related to business entities. Business Entities (Domestic and Foreign)—Overview. While we would not disagree that foreign businesses are risky customers, the Manual could also help you to identify the least-risky foreign businesses. The Manual describes two kinds…
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We do Fedline Advantage for wires that go out of and come in to the bank. For how long do we have to retain documentation of the wires?
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We recommend that you retain documentation of Fedline transfers for five years. The BSA regulations require you to retain documentation of any funds transmittals of $3,000 or more for five years. 31 CFR 1010.410(f)
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If we have a business customer that cashes payroll checks for its employees, should we consider the customer to be a money services business (MSB)?
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The FinCEN FAQs state that an employer cashing only its own payroll checks would not be considered a check casher (and therefore would not be considered to be a money services business) for purposes of FinCEN’s MSB requirements, even if the amounts of checks cashed would exceed $1,000. FinCEN recently codified this exclusion. A July…
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What is the extent of a bank’s duty to determine whether an authorized signer has the authority to sign on behalf of a business?
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The Customer Identification Program (CIP) regulations provide specific guidance on developing policies for opening new corporate accounts. They require that you have a policy which requires you to collect the following information from customers: (1) name, (2) date of birth (for individuals), (3) address (principal place of business, local office, or other physical location), and…