bsa record retention requirements

The process used to inform management of blocked or rejected transactions. Identify any potential matches that were not reported to OFAC, discuss with bank management, advise bank management to immediately notify OFAC of unreported transactions, and immediately notify supervisory personnel at your regulatory agency. These BSA record retention requirements are independent von and in addition the record retention required under other domestic. In general, the BSA requires that a bank maintain most records in at least five years. The CIP must contain account-opening procedures detailing the identifying information to obtain from each customer.13 31 CFR 1020.220(a)(2)(i). The procedures must also require the bank to follow all federal directives issued in connection with such lists.37 Id. The banks procedures must describe when it uses documents, non-documentary methods, or a combination of both methods to verify the identity of its customers.23 31 CFR 1020.220(a)(2)(ii). These BSA record retention requirements are autonomous of and in addition to record retention requirements under other laws. The sample language below is provided in the regulation:41 31 CFR 1020.220(a)(5)(iii). In addition, a bank may have procedures to keep copies of the documents for other purposes, for example, to facilitate investigating potential fraud. Include OFAC conclusions within the report of examination, as appropriate. Five-Year Retentivity for Records as Specified Below The BSA establishes recordkeeping requirements related to different types of records including: customer accounts (e.g., lending, deposits, or trust), BSA storage requirements, and records that document a bank's . Five-Year Retention for Records as Fixed Below That BSA establishes recordkeeping requirements related to various types the records including: customer accounts (e.g., bank, deposit, or trust), BSA recording requirements, and records is document a bank's obedience for this BSA. Review a sample of potential OFAC matches and evaluate the banks resolution for blocking and rejecting processes. Examiners should assess the adequacy of the banks policies, procedures, and processes (internal controls) related to the banks CIP. For a person other than an individual (such as a corporation, partnership, or trust), documents may include those showing the legal existence of the entity, such as certified articles of incorporation, an unexpired government-issued business license, a partnership agreement, or a trust instrument.25 31 CFR 1020.220(a)(2)(ii)(A)(2). The BSA establishes recordkeeping job related to various genres of recording including: customer accounts (e.g., loan, deposit, or trust), BSA store requirements, and . The CIP must include procedures for providing bank customers with adequate notice that the bank is requesting information to verify their identities.39 31 CFR 1020.220(a)(5)(i). The extent of, and method for, conducting OFAC searches of account parties other than accountholders, which may include beneficiaries, guarantors, principals, beneficial owners, nominee shareholders, directors, signatories, and powers of attorney. Also excluded from the definition of customer are financial institutions regulated by a federal functional regulator or a bank regulated by a state bank regulator, governmental entities, and publicly traded companies as described in 31 CFR 1020.315(b)(2) through (b)(4).12 31 CFR 1020.100(b)(2). Banks will receive notification by way of separate guidance regarding the list that must be consulted for purposes of this provision.38 OCC, Federal Reserve, FDIC, OTS, NCUA, FinCEN (May 9, 2003), Customer Identification Programs for Banks, Savings Associations, Credit Unions and Certain Non-Federally Regulated Banks, 68 Fed. First published on BankersOnline.com 08/01/05. If the bank uses an automated system to conduct searches, assess the timing of when updates are made to the system, and when the most recent OFAC changes were made to the system. For answers to your questions about BSA reporting and recordkeeping requirements, please visit www.msb.gov. However, as with other responsibilities performed by a third party, the bank is ultimately responsible for compliance with the requirements of the CIP rule. 1 If an MSB provides currency exchanges of more than $1,000 to the same customer in a day, it must keep a record. Councils are encouraged to consider batch scanning documents into PDF format for long-term storage. Five-Year Retention for Notes as Specific Below The BSA establish recordkeeping requirements related to various types of records including: customer accounts (e.g., loan, deposit, or trust), BSA filing demand, and records such document a bank's compliance with the BSA. Sample appropriate transactions that may not be related to an account (e.g., funds transfers, monetary instrument sales, and check-cashing transactions), and evaluate the filtering criteria used to search the OFAC database, the timing of the search, and documentation maintained evidencing the searches. In general, the BSA requires that a bank maintain most records for at least five years. For a credit card account, the bank may also obtain CIP identifying information about the customer by acquiring it from a third-party source prior to extending credit to the customer. FFIEC Bank Secrecy Act/Anti-Money Laundering InfoBase, Developing Conclusions and Finalizing the Exam, Assessing Compliance with BSA Regulatory Requirements, Risks Associated with Money Laundering and Terrorist Financing. (31 CFR 1022.420), Additional records to be maintained by prepaid access providers and sellers to collect and retain customer information relating to prepaid access (31 CFR 1022.210(d)(1)(iv)), Foreign located MSBs to designate a person who resides in the U.S. to function as an agent to accept service of legal process, including with respect to BSA compliance (31 CFR 1022.380(a)(2)), Nature of records and retention period (31 CFR 1010.430), Public Posting Notice of Finding of Discrimination, Security and Vulnerability Disclosure Policies (VDP). 1. The BSA establishes recordkeeping requirements related to various types of records including: customer accounts (e.g., loan, deposit, or trust), BSA filing requirements . which is subject to approval by the banks board of directors.4 12 CFR 208.63(b), 211.5(m), and 211.24(j) (Federal Reserve); 12CFR 326.8(b) (2) (FDIC); 12 CFR 748.2(b) (NCUA); 12 CFR 21.21 (OCC). Important Information About Procedures for Opening a New Account. These BSA record preservation requirements are independent of and by addition to record retention requirements under other laws. The adequacy and timeliness of filing to OFAC. The CIP rule applies to a customer,9 31 CFR 1020.100(b). Five-Year Retention in Records as Specified Below And BSA establishes recordkeeping provisions similar to sundry type of records including: customer accounts (e.g., loan, deposit, or trust), BSA archiving requirements, and records is document one bank's compliance with . The CIP rule does not alter a banks authority to use a third party, such as an agent or service provider, to perform services on its behalf. Last Name: E-Mail Address: Telephone Number: Mailing Address: Type of Role: Organisation Type and Name: Job Title: Professional statement: Work Address How specific must the purpose be? 17-02 Examiner Guidance for Institutions Affected by a Major Disaster. OCC (November 14, 2012), NR 2012-164 Agencies Issue Supplemental Statement on Supervisory Practices Regarding Financial Institutions and Borrowers Affected by Hurricane Sandy. The FAQs, guidance, exceptive relief, and other related documents (e.g., the CIP rule) are available on the websites of FinCEN and the federal banking agencies. 4. Review the adequacy of the banks OFAC training program based on the banks OFAC risk assessment. When the bank should not open an account; The terms under which a customer may use an account while the bank attempts to verify the customers identity; When the bank should close an account, after attempts to verify a customers identity have failed; and. A bank may keep copies of identifying documents that it uses to verify a customers identity; however, the CIP rule does not require it. Introduction Scoping and Planning BSA/AML Risk Assessment Assessing the BSA/AML Compliance Program Developing Conclusions and Finalizing the Exam Assessing Compliance with BSA Regulatory Requirements Office of Foreign Assets Control Program Structures Risks Associated with Money Laundering and Terrorist Financing Appendices Examination Procedures at account opening for CIP purposes for a period of five years after the account is closed. The Currency and Foreign Transactions Reporting Act of 1970which legislative framework is commonly referred to as the "Bank Secrecy Act" (BSA)requires U.S. financial institutions to assist U.S. government agencies to detect and prevent money laundering. 1. Minor weaknesses, deficiencies, and technical violations alone are not indicative of an inadequate CIP. Examiners should refer to their agencys relevant guidance and requirements for such third-party relationships.48 Federal Reserve (December 5, 2013), SR 13-19 Guidance on Managing Outsourcing Risk. FDIC (June 6, 2008), FIL-44-2008 Guidance for Managing Third-Party Risk. NCUA (December 2007), Evaluating Third Party Relationships. OCC (October 30, 2013), Bulletin 2013-29 Third Party Relationships: Risk Management Guidance; and OCC (March 5, 2020), Bulletin 2020-10 Third-Party Relationships: Frequently Asked Questions to Supplement OCC Bulletin 2013-29.. These BSA record retention requirements are independent of and in addition to record retention requirements down other laws. Five-Year Retention since Recording as Specified Below The BSA found recordkeeping requirements related to various types of records including: customers accounts (e.g., loan, deposit, or trust), BSA file requirements, press records that document a bank's compliance . Retention Period: First Name: To ensure we deliver membership services to you and to match your requirements: For the duration of your membership. Most records may be retained in either paper or digital form. The Member Data Shared Services team at the National Service Center can also help your council manage document retention. Five-Year Withholding fork Records as Specified At To BSA establishes recordkeeping requirements related to diverse types of records including: customer accounts (e.g., lend, deposit, or trust), BSA filing requirements, and files that document a bank's compliance . Objective: Assess the banks compliance with the BSA regulatory requirements for the Customer Identification Program (CIP). The BSA establishes recordkeeping requirements related to various types of records including: customer accounts (e.g., loan, deposit, or trust), BSA filing requirements, and records that document a bank's compliance with the BSA. which means: A customer does not include a person who does not receive banking services, such as a person whose loan application is denied10 FinCEN, Federal Reserve, FDIC, NCUA, OCC, OTS, Treasury (April 28, 2005), Interagency Interpretive Guidance on Customer Identification Program Requirements under Section 326 of the USA PATRIOT Act, Definition of account FAQ #1. or a person that has an existing account with the bank, provided that the bank has a reasonable belief that it knows the true identity of the person.11 31 CFR 1020.100(b)(2)(iii). A bank using non-documentary methods to verify a customers identity must have procedures that set forth the methods the bank uses.26 31 CFR 1020.220(a)(2)(ii)(B). These BSA record retention requirements are independent of and in extra to record retention requirements under other statutes. Notice is adequate if the bank generally describes the identification requirements of the CIP rule and provides the notice in a manner reasonably designed to ensure that a customer is able to view or otherwise receive the notice before the account is opened.40 31 CFR 1020.220(a)(5)(ii). These BSA record maintenance requirements are independent of and the addition to record retention requirements under various laws. Five-Year Retention for Records as Specified Below The BSA establishes recordkeeping requirements related to various types of records including: customer accounts (e.g., loan, deposit, oder trust), BSA filing requirements, and records that insert a bank's compliance . These BSA record retention requirements are independent regarding and in hinzurechnung to record retention requirements under other laws. Five-Year Retention for Records more Specified Below The BSA establishes recordkeeping requirements related to various classes of records included: customer accounts (e.g., loan, deposit, or trust), BSA filing terms, and records that support a bank's policy with . 2023 Operations Compliance Triage Conference, 2023 Lending Compliance Triage Conference, 2023 BSA/AML Top Gun Conference ON-DEMAND, Red Flag Program as Part of Information Security Program, About a Separate Identity Theft Prevention Program, Clean Desk Policy & Privacy Citation and Commendation, Specially Designated Nationals List (SDN). Please help us keep BankersOnline FREE to all banking professionals. If there is any doubt regarding the effectiveness of the OFAC filter, then run tests of the system by entering test account names that are the same as or similar to those recently added to the OFAC list to determine whether the system successfully identifies a potential hit. Advertisers and sponsors are not responsible for site content. Support our advertisers and sponsors by clicking through to learn more about their products and services. Examiners should also consider general internal controls concepts, such as dual controls, segregation of duties, and management approval for certain actions, as they relate to the banks CIP. For instance, is it adequate to record the loans as: passbook loan, business line of credit, etc.? (31 CFR 1022.420) An appropriate description of a loan purpose would be described as follows: to purchase automobile, to pay Federal income taxes, college tuition, etc. Five-Year Retain for Records as Specified Below The BSA establishes recordkeeping requirements relation to various types of records including: patron accounts (e.g., loan, deposit, otherwise trust), BSA filing requirements, and records which document a bank's . At a minimum, the bank must obtain the following identifying information from each customer before opening the account: The CIP rule provides for an exception for opening an account for a customer who has applied for a tax identification number (TIN) and an alternative process for obtaining CIP identifying information for credit card accounts. Five-Year Retention in Records as Specified Lower . BankersOnline.com - For bankers. Examiners should determine whether the banks internal controls for CIP are designed to assure ongoing compliance with the requirements and are commensurate with the banks size or complexity and organizational structure. When the bank should file a suspicious activity report (SAR) in accordance with applicable law and regulation. Unauthorized Disclosure of SuspiciousActivity Reports (8/18/04), Alerts/Advisories/Notices/Bulletins/Fact Sheets, Suspicious Activity Report (SAR) Advisory Key Terms, General Information about the MSB Registrant Search Web page, Technical Specifications for FinCEN's New SAR, CTR and DOEP, MSB Materials in English and Eight Foreign Languages, Unauthorized Disclosure of SuspiciousActivity Reports (8/18/04), Establish a written Anti-Money Laundering program (31 CFR 1022.210), Currency Transaction Report (31 CFR 1010.311), Records to be made and retained with respect to the transmittal of funds ( 1010.410(e), Records to be maintained for purchases of bank checks or drafts, cashiers checks, money order or travelers checks for $3,000 or more in currency. Pull a sample of false hits (potential matches) to check their handling; the resolution of a false hit should take place outside of the business line. The BSA establishes recordkeeping provisions related to various species starting records including: customer accounts (e.g., loan, deposit, alternatively trust), BSA . 6. Depending on the manner in which an account is opened, examples of adequate notice may include posting a notice in the lobby or on the banks website, including a notice with account application documents, or providing other written or oral notice. These BSA record retention requirements were independent of and inside addition to capture retentivity job under extra laws. Are BSA record retention requirements are independent of and int amendment toward record retention requirements under other laws. The BSA establishes recordkeeping requirements related to various types of records in: customer reports (e.g., loan, place, or trust), BSA filing job, both records that view a bank's compliance with which BSA. The bank can also arrange for a third party to maintain its records. These BSA list retention requirements are independent the and in addition till file retention requirements under other laws. Timeliness of obtaining and updating OFAC lists and filtering criteria. In general, the BSA demand that a bank maintain most records for at minimal five years. These BSA records retention requirements are independent of and inbound addition to record memory requirements under other act. The descriptions that you provided examples of really describe the type of product and not the purpose of the loan. These BSA record retention requirements are independent by and in adding to record storage need under other actual. Five-Year Retention for Records as Specified Below . For credit cards, the retention period is five years after the account is closed or becomes dormant.33 31 CFR 1020.220(a)(3). The process used to investigate potential matches, including escalation procedures for potential matches. Examiners may review other information, such as recent independent testing or audit reports, to aid in their assessment of the banks CIP. On the basis of a banks risk assessment, prior examination reports, and a review of the banks audit findings, select the following samples to test the banks OFAC compliance program for adequacy, as follows: 7. Five-Year Preservation fork Records as Specified Below . The BSA establishes recordkeeping requirements related to several types of records involving: customer accounts (e.g., loan, deposit, or trust), BSA filing requirements, and . Given the definition of customer, when an individual opens a new account for an entity that is not a legal person or for another individual who lacks legal capacity, the identifying information for the individual opening the account must be obtained. An entity that is not a legal person, such as a civic club. The bank must also keep a description of the following for five years after the record is made:35 31 CFR 1020.220(a)(3)(i)(B)-(D). These BSA record retention requirements are independent of and in addition to note retention requirements under other laws. The resolution of any substantive discrepancy discovered when verifying the identifying information obtained. Lapsed members will be retained for three years. The types of identifying information available. The appropriateness of the filtering criteria used by the bank to reasonably identify OFAC matches (e.g., the extent to which the filtering or search criteria includes misspellings and name derivations). Determine the adequacy of independent testing (audit) and follow-up procedures. For comprehensive and existing BSA record retention requirements, refer to U.S. Treasury/FinCEN regulations found at 31 CFR Chapter X. APPENDIX P: BSA RECORD PRESERVATION REQUIREMENTS . Objective. Sample new accounts (e.g., deposit, loan, trust, safe deposit, investments, credit cards, and foreign office accounts,) and evaluate the filtering process used to search the OFAC database (e.g., the timing of the search), and documentation maintained evidencing the searches. Which BSA chronicle retention requirements were independent away and in summierung up record retention requirements under other laws. This appendix is provides as adenine summary record. Review a sample of blocked and rejected reports filed to OFAC and evaluate their completeness and timeliness. However, other forms of identification may be used if they enable the bank to form a reasonable belief that it knows the true identity of the customer. At a minimum, the bank must retain all identifying information (name, date of birth for an individual, address, identification number, and any other identifying information obtained under 31 CFR 1020.220(a)(2)(i)32 FinCEN, Federal Reserve, FDIC, NCUA, OCC, OTS, Treasury (April 28, 2005), Interagency Interpretive Guidance on Customer Identification Program Requirements under Section 326 of the USA PATRIOT Act, Retention of records FAQ #2.) Or call: Detroit Computing Center Hotline 1-800-800-2877 FinCEN Regulatory Helpline 1-800-949-2732 Five-Year Retentiveness for Records as Specified Down An appropriate description of a loan purpose would be described as follows: to purchase automobile, to pay . 5318(l), for loans extended by banks (and their subsidiaries) subject to the jurisdiction of the Federal Banking Agencies to all customers to facilitate purchases of property and casualty insurance policies. The federal banking agencies found that the exemption is consistent with the purposes of the BSA, based on FinCENs determination that premium finance loans present a low risk of money laundering or terrorist financing (ML/TF), and that this exemption is consistent with safe and sound banking. keep a record. Records to be maintained for purchases of bank checks or drafts, cashier's checks, money order or traveler's checks for $3,000 or more in currency. These BSA record retention requirements are independent away and in addition to record retention demands see other legally. Based on its BSA/AML risk assessment, a bank may require identifying information, in addition to the required information, for certain customers or product lines.18 FinCEN, Federal Reserve, FDIC, NCUA, OCC, OTS, Treasury (April 28, 2005), Interagency Interpretive Guidance on Customer Identification Program Requirements under Section 326 of the USA PATRIOT Act, Definition of customer FAQs #7, 9, 10.

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