All in BSA

NCUA Guidance Regarding CDD & UBO Compliance

Adam Witmer
Regulatory Update, BSA

In August of 2018, the NCUA issued a letter to Credit Union CEOs and Boards of Directors regarding examination guidance for Bank Secrecy Act (BSA) customer due diligence(CDD) and ultimate beneficial ownership (UBO) compliance.  The letter (18-CU-02) explained to credit unions that the NCUA has issued examination procedures to field staff regarding the new CDD and UBO rules that went into effect earlier in 2018. The Credit Union Letter included an attached supervisory letter that provides all federally insured credit unions with examination expectations for NCUA examiners regarding conducting reviews of a credit union’s compliance with the new rules.  

Compliance Considerations for CD Secured Loans

Adam Witmer
Compliance Management, BSA, Fair Lending, CRA, Regulation Z

Compliance requirements for CD secured loans are not typically a huge topic of discussion for compliance seminar speakers or article authors.  That said, one of our members suggested this topic (you know who you are!), and I think it is a great topic to write on from the perspective of CD secured loans, rather than just bringing up these loans when discussing applicable regulations (which is usually the way it happens). The truth is that most financial institutions (and regulators) just…

New SAR Form 2018

Adam Witmer
BSA, Regulatory Update

In January of 2018, FinCEN provided an announcement that a new version of the Suspicious Activity Report (SAR) will be modified and available for use in June of 2018.  It is our understanding that, on Friday, July 28, 2018 FinCen finally released the new SAR Form (2018).

This revision marks the first update to the SAR form since releasing the electronic-only version (v1.1) of the form a few years back.  These SAR changes appear to be substantially similar to the 2017 revisions that were made to the Currency Transaction Report (CTR) as most changes are minor in nature and will not be substantial for most financial institutions.  That said, three of the five sections of the original version of the electronic SAR are reported o have been modified, though, again, most changes are not substantial to financial institutions - with the exception on SARs filed for a cyber-event.  

SAR Filing Deadlines

SAR Filing Deadlines

Adam Witmer
BSA

This Compliance Clip explains the SAR filing timeframes, which you would think would be easy. Unfortunately, like all good compliance topics, they are actually more confusing than you would think. Adam uses layman's terms to explain when the clock starts and how to calculate when a SAR filing is due.

CTRs For Sole Proprietorships

CTRs For Sole Proprietorships

Adam Witmer
BSA

This week's Compliance Clip explains how to complete a CTR on a sole proprietor who uses a DBA (doing business as) alias in operating their business. Adam explains what is needed in the CTR and provides the applicable guidance reference to cite the requirements.

Reminder to Watch for New SAR Form

Adam Witmer
BSA, Regulatory Update

As we explained several months back, FinCEN announced in January that they would be revising the SAR form in June of 2018.  As of today, that revision has not yet been released, so Financial Institutions are reminded that they should expect a new SAR form to be released within the next few days. The planned revision is the first change to v1.1 of the original electronic-only SAR form that was implemented a few years back.  Based on the proposed revisions, it appears that all…

FinCEN Advisory on Corrupt PEPs

Adam Witmer
BSA, Regulatory Update

This week, on June 12, 2018, the Financial Crimes Enforcement Network (FinCEN) issued an advisory on human rights abuses enabled by corrupt senior foreign political figures - also known as Politically Exposed Persons (PEPs) - and their financial facilitators.  In their 15-page advisory, FIN-2018-A003, FinCEN explains that high-level political corruption “undermines democratic institutions and public trust, damages economic growth, and fosters a climate where financial crime and other forms of lawlessness can thrive.” FinCEN also explains that corrupt senior foreign political figures can also contribute directly and indirectly to human rights abuses.  Therefore, FinCEN has issued this guidance to, among other things, help financial institutions identify “red flags” for suspicious activity in relationship to senior foreign political figures.  The advisory also provides guidance for filing SARs on PEPs. (Read more.)

BSA Statement of Loan Purpose

BSA Statement of Loan Purpose

Adam Witmer
BSA

In this video, Adam discusses the BSA record retention requirements for obtaining a clear statement of purpose on certain loans. Adam explains the requirement in detail including which loans the rule applies to, common errors, and best practices to ensure compliance.

Load More